Mosaic Capital Partners LLC has made an undisclosed investment in the employee stock ownership plan buyout of Linxx Global Solutions Inc. No financial terms were disclosed. The McLean Group served as financial advisor to Linxx on the transaction. Based in Virginia Beach, Virginia, Linxx is a provider of training, security, information assurance and program management services that support agencies such as the Department of Defense; National Aeronautics and Space Administration; the Department of State; and the Department of Homeland Security.
CHARLOTTE – April 28, 2015
Charlotte-based Mosaic Capital Partners, LLC (“Mosaic”) completed its fourth investment after structuring and funding the leveraged employee stock ownership plan (“ESOP”) buyout of Linxx Global Solutions, Inc. (“Linxx” or the “Company”). Linxx, based in Virginia Beach, VA, is a leading provider of training, security, information assurance, and program management services in global support of agencies such as the Department of Defense, the National Aeronautics and Space Administration, the Department of State and the Department of Homeland Security.
Mosaic partner William Hayes stated, “Our team at Mosaic was honored to be selected as a partner to the management and employees of Linxx in its transition to employee ownership. Amidst a competitive process that included strategic buyers, our experience and knowledge of ESOPs allowed us to structure the transaction in such a way that we delivered significant value to the founder and created the opportunity for management and employees to build long-term wealth.”
Dabney Smith, a fellow Mosaic partner, further commented, “Mosaic is excited by the opportunity to work with such an exceptional management team with the experience, depth and longevity that exist in the Company. Their extensive service in the special operations community during their military careers and post-service experience in the training and security services fields since the founding of the company in 2006 have resulted in a successful company that is extremely well positioned to capitalize on substantial near-term growth opportunities.”
Keith Butcher, another Mosaic partner and co-founder of the middle market investment bank ButcherJoseph & Co., will facilitate a company-wide meeting to educate Linxx’s employees on the ESOP structure and what it means for them.
Linxx’s CEO, Martin Strong, shared, “Linxx was founded on the special operations premise that when given a focused mission statement, well led, cohesive teams always outperform. Becoming an ESOP company only empowers our Linxx team to reach for greater opportunities in the years ahead. Our founder Frank Cucci was impressed with the manner in which Mosaic educated us on the feasibility of an ESOP transaction. We value the culture we’ve built at Linxx, and it was evident that employee ownership would enhance our culture of accountability and reward the people who contribute to our success.”
The McLean Group served as Linxx’s financial advisor during the transaction. Other funding sources included Branch Banking & Trust Company and Salem Investment Partners of Winston-Salem, NC.
About Linxx Global Solutions, Inc.
Linxx Global Solutions, Inc. (Linxx) is a leading provider of a wide range of training, security, information assurance, and program management services globally in support of the Department of Defense; National Aeronautics and Space Administration; the Department of State; the intelligence community; the Department of Homeland Security; and other federal, state and local agencies.
About Mosaic Capital Partners, LLC
Based in Charlotte, NC, Mosaic CapitalPartners, LLC (“Mosaic”) is a private investment firm providing mezzanine debt and equity to privately held lower middle market companies. Mosaic employs traditional private equity buyout strategies along with the partners’ unique expertise in Employee Stock Ownership Plans (ESOPs) to help business owners achieve their liquidity, wealth transfer and ownership transition goals. Mosaic’s strategy is to partner with quality management teams at sound companies in stable industries to help drive value growth.
About ButcherJoseph & Co.
ButcherJoseph & Co. (“ButcherJoseph”) is an investment bank headquartered in St Louis with coverage in Chicago, Washington, DC, and Charlotte, NC. ButcherJoseph provides investment banking advisory services to middle market companies. With more than $5 billion in successfully completed Employee Stock Ownership Plan (“ESOP”) transactions, ButcherJoseph & Co. is known as a leader in the ESOP field.