Philadelphia-based private equity firm LLR Partners will acquire Paragon Technology Group, a provider of tech solutions to public sector clients. Specifics of the transaction were not publicized, but Scott Friedlander has been appointed President and CEO of the company following LLR’s investment in the company. Some equity will be distributed among the firm’s employees, executives and founders.
VIENNA, Va., Jan. 18, 2012 — Paragon Technology Group, a leading provider of strategic technology solutions to the public sector, and LLR Partners, one of the Mid-Atlantic’s largest private equity investment firms with over $1.4 billion under management, announced today that the equity firm has made a majority investment in Paragon. The remaining ownership will be held by the company’s founders, executive team and employees. As part of the acquisition, LLR has appointed Scott Friedlander as President and CEO of Paragon. Mr. Friedlander has more than 30 years of executive leadership experience in the IT industry, including key leadership positions at Xerox Corporation and GTSI Corp.
Paragon’s suite of services include IT systems engineering and application development, governance and PMO implementation and support, business intelligence and data management, enterprise modernization, and financial and quality management. As a profitable, privately-owned company, Paragon has been recognized as one of the top small businesses in the United States and one of the 50 fastest growing companies in the Washington, D.C., area. The investment and professional backing will allow the company to maintain its impressive growth rate and to enhance service offerings to new and existing customers.
“I am very excited about starting a new chapter of Paragon,” said Gazelle Hashemian, co-founder of Paragon Technology Group, who will take on a new role post transaction as a member of the Board of Directors. “I am thrilled that a seasoned executive like Scott will be leading the company throughout the next phase. Scott’s experience and energy combined with LLR’s backing will provide Paragon the necessary support to continue to grow and will expand our ability to support the customer mission. Paragon has been built from the ground up by committed, talented, and hard working professionals. I am proud of what our team has achieved in the past decade and look forward to another great decade ahead.”
“We are extremely proud of Paragon’s successful journey over the past 15 years,” said Dr. Sassan Kimiavi, co-founder of Paragon Technology Group. “The investment of LLR Partners and the addition of the new leadership team will fuel continued strategic growth and allow the Paragon team to expand on the client-centric solutions that have helped our customers meet their business goals every day.”
Scott Friedlander, President and CEO of Paragon Technology Group, added, “Today’s announcement marks an exciting new chapter for Paragon’s strategic direction. The company has seen dramatic growth over the past five years and continues to build superior technical domain expertise. I am thrilled to be joining Gazelle, Sassan and the strong management team as we build the company for future growth. Partnering with LLR will provide us the capital and the expertise necessary to grow our core business and acquire complementary businesses that allow us to better serve our customers.” The McLean Group, LLC acted as Paragon Technology Group investment banking advisors for this transaction.
“We have been very impressed with Paragon’s growth,” said David Stienes, Partner at LLR. “Gazelle, Sassan and their team have focused on providing superior technical services with a demonstrable return on investment to their client base. Their domain expertise and commitment to quality has enabled them build a large base of loyal customers. We view Paragon as a platform that can continue to add additional service offerings and knowledge in order to better serve the public sector.”
About Paragon Technology Group, Inc.
Paragon Technology Group, Inc. is a fast-growing information technology company providing professional services to the public sector. Founded in 1997, Paragon has been recognized as one of the top 50 fastest growing companies in the Washington, D.C., Metro area and one of the top small businesses in the US. Paragon delivers an extensive suite of services, including IT systems engineering and application development, governance and PMO implementation and support, business intelligence and data management, enterprise modernization, and financial and quality management, across the public sector. Paragon’s vertical expertise includes Healthcare IT, logistics and supply chain management, and homeland security. Paragon provides these services to Federal Healthcare (NIH, CMS, FDA), DHS, DOJ, USDA, Treasury, and various Department of Defense agencies. Paragon is CMMI Level 2 Certified company. Paragon is headquartered in Vienna, Virginia.
About LLR Partners
LLR Partners, a leading private equity firm based in Philadelphia, PA, provides capital to middle market growth companies with proven business models in a broad range of industries including financial, health care and business services, information technology, and education. With over $1.4 billion under management, LLR is flexible in its approach, taking minority or majority positions, and investing in transactions ranging from expansion and growth capital to recapitalizations and buyouts. For more information about LLR, please visit www.llrpartners.com.