STG Group, Inc. Announces Merger Agreement with Global Defense & National Security Systems Inc. (GDEF)

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Simon Lee, STG

Simon Lee, STG

On June 9, 2015 Global Defense & National Security  Systems Inc. (“GDEF”) and STG Group Inc. (“STG”) announced a definitive agreement to conduct a strategic merger, with an approximate value of $165.5 million.

GDEF is a special purpose acquisition company with clients in the at U.S. defense and national security sectors. STG works with over 50 U.S. federal agencies to bring  cyber, software and intelligence solutions.

“We look forward to combining capabilities with GDEF to strengthen and grow our support for our clients,” said the Founder, Chairman and CEO of STG, Simon Lee. “I believe this path to becoming a public company will enable us to continue our history of customer service excellence; realize our full potential, providing the opportunity to scale and bring current and new capabilities to a wider customer base; and increase opportunities for our employees to grow professionally. GDEF’s operational and investment expertise and relationships will be vital as we seek to grow, and broaden our business in priority spending areas.”

GDEF Chairman Damian Perl, said, “When we launched GDEF in 2013, our stated intent was to combine with agile companies with a sound business base and next generation capabilities aligned with U.S. defense and national security priorities. That is exactly what we are doing with STG, and why we are so excited about this combination. STG is an industry specialist with critical capabilities, a highly diverse and long standing customer base and proven performance. This transaction gives us the opportunity to work together in building a leading provider of mission-critical support in this highly sophisticated market, leveraging STG’s existing relationships and GDEF’s operational, industry and M&A expertise. We are very confident that we can create value for investors, clients and employees through stronger organic growth, taking STG’s capabilities to more customers and integrating new, complementary capabilities.”

GDEF and STG believe that the combination will increase STG’s skill base and allow the company to better market itself in the defense, civilian, and intelligence communities. The companies hope to stabilize STG client relationships through continuous company improvements and enhanced development of new products, solutions and capabilities.

Bob Kipps, Managing Director KippsDeSanto & Co, said of the merger, “When completed, this exciting transaction will make STG a force in the mid-tier and reflects the creative liquidity and growth alternatives available to leading firms in today’s robust capital markets.”

STG was founded in 1986.

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