PE Deals

LMI to sell for-profit subsidiary to investor group

The investors are Declaration Partners, Capitol Meridian Partners, and 22C Capital.

-
  • The for-profit subsidiary will retain the LMI name while the remaining entity will be re-branded as nonprofit NobleReach Foundation
  • The deal is expected to close in the third quarter of this year
  • LMI is a tech-enabled consultancy for the federal government

LMI has agreed to sell its for-profit subsidiary to an investor group. No financial terms were disclosed.

The investors in the consortium are Declaration Partners (backed by the family office of David M. Rubenstein), Capitol Meridian Partners, and 22C Capital.

The for-profit subsidiary will retain the LMI name. The remaining entity will be re-branded as nonprofit NobleReach Foundation and be a free-standing independent entity. The deal is expected to close in the third quarter of this year.

On the transaction, Doug Wagoner, LMI president and CEO, said in a statement: “This new partnership will better position LMI to innovate and support the missions of its government customers. Declaration, Capitol Meridian, and 22C bring an extensive knowledge of the government marketplace and a deep technology expertise, strengthening our ability to help our customers solve their complex challenges.”

Founded in 1961 to help the Department of Defense resolve complex challenges, LMI provides digital services, advanced analytics, logistics, and management advisory services across the federal government, including the Department of Defense, the Department of Homeland Security, and the health and intelligence communities.

KippsDeSanto & Co. served as the M&A advisor to LMI, and Macquarie served as M&A advisor to the investors. The investors were also advised by Latham & Watkins, Sidley Austin, and Paul Weiss on various aspects of the transaction.

Declaration Partners has approximately $2.5 billion in assets under management across its investment strategies, which include growth equity, real estate, platform company investments, fund seeding, and other opportunistic strategies. The firm was founded in 2017 and is headquartered in New York with an office in the Washington, DC area.

Capitol Meridian Partners was formed in 2021 to invest at the nexus of commercial and government markets, targeting opportunities where the firm can invest and drive value creation through active engagement with management.