Octo, which is backed by Arlington Capital Partners, has acquired Herndon-based B3 Group, a provider of enterprise-level application modernization leveraging low-code/no-code software and platforms. No financial terms were disclosed.
January 7, 2022, Washington, D.C. – Octo, the premier IT modernization provider for the Federal Government, announced that it has acquired privately held, Herndon-based B3 Group, Inc. (B3), which provides enterprise-level application modernization leveraging low-code/no-code software and platforms such as Salesforce, Microsoft Power Platform, Pega, and ServiceNow; large-scale data governance, integration and analytics; and cloud engineering and operations to federal healthcare customers.
B3 has 13 years of experience partnering with the U.S. Department of Veterans Affairs (VA) to improve patient experience and health outcomes for veterans. This acquisition expands Octo’s current federal health footprint from the U.S. Department of Health and Human Services (HHS) and the Defense Health Agency (DHA) to include the VA, and bolsters Octo’s position as a major IT modernization services provider to these major federal health customers. The addition of B3’s marquee programs, including the $686 million Digital Transformation Center (DTC) contract, expands the technical modernization expertise Octo provides at scale to its existing federal civilian, homeland security, defense, and intelligence customers.
Both B3 and Octo have a history of driving innovation on behalf of their customers. B3’s Digital Transformation and Modernization (DTM) lab will augment Octo’s recently expanded oLabs™ environment. Housed in a 14,000 square foot facility in Reston, Virginia, oLabs is one of the largest D.C. metro area centers dedicated to Federal Government R&D, containing more than 15 petaflops of AI computer power and two petabytes of FlashBlade storage available to existing customers – and now the VA – to power emerging technology research and product development to improve mission effectiveness.
Michael Lustbader, a Managing Partner at Arlington Capital Partners, said, “B3 adds differentiated capabilities in low-code/no-code software development to the suite of Octo’s solutions. We look forward to serving the U.S. Department of Veterans Affairs, bringing these expanded capabilities to our existing customers, partnering with B3’s management, and investing behind their modernization growth vectors.”
“We are ecstatic B3 is joining the Octo family,” said Octo CEO, Mehul Sanghani. “Octo’s differentiation lies in its ability to provide pure-play modernization capabilities and proven past performance at a scale and breadth that is unmatched. The addition of B3 further expands that differentiation, adding proven digital transformation capabilities with low-code/no-code technologies, more than 350 highly certified professionals, and over $1 billion of proven task order past performance delivering digital transformation solutions in key markets. These capabilities and proven performance combined with Octo’s highly certified personnel and innovative product suites, will enable current and future federal customers to better serve citizens, active-duty military, and veterans. Now with even deeper experience across the health space added to our defense, intelligence, national security, and civilian customer base, Octo has greatly enhanced its position to serve as the Federal Government’s complete, end-to-end digital modernization partner.”
Ben Ramundo, a Vice President at Arlington Capital Partners, said, “The acquisition of B3 represents the realization of Octo’s long-contemplated market strategy to enter the VA, the largest healthcare system in the country, and layers in yet another organic growth vector for the company to pursue with its growing repository of emerging capabilities and technology solutions.”
“Joining Octo allows us to enhance our offerings to our customers through a more robust set of solutions and provide greater career opportunities to our employees,” said B3 CEO, Dwight Hunt. “As B3 and Octo began to collaborate, we collectively realized that our commitment to improving digital services to the VA and the broader federal health community will turbocharge the solutions we deliver to our nation’s veterans and those that support them. Our corporate philosophies and values strongly align, which makes us even more excited to join forces with Octo and create a new vision for the future.”
Octo’s General Manager of Federal Health, Charlie McQuillan, said, “The addition of B3’s low-code/no-code solutions and talented employee base expands Octo’s ability to deliver effective and efficient health solutions. In turn, Octo’s robust technical staff and offerings will enhance services available to B3’s customer base, including the VA. We look forward to working as a unified team, bringing the best of modernization to the Federal Government.”
B3’s leadership will remain with the company and expand Octo’s Health business to drive continued growth and customer success.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC-based private equity firm that is currently investing out of Arlington Capital Partners V, L.P., a $1.7 billion fund. The firm has managed approximately $4.0 billion of committed capital via five investment funds. Arlington is focused on middle market investment opportunities in growth industries including government services and technology, aerospace & defense, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their Company’s position as leading competitors in their field. https://protect-eu.mimecast.com/s/6ORzCNOX4hZqpXwsmFp-a?domain=arlingtoncap.com.