On August 11, 2015 it was announced that Salient Federal Solutions, Inc. and CRGT Inc. are merging to form Salient CRGT. The newly formed company is projected to employ more than 1,700 people and generate an approximate annual revenue of $375 million. The combined company is backed by two private equity firms, Bridge Growth Partners, LLC and Frontenac Co.
This merger will position Salient CRGT for leadership in IT modernization and business intelligence for its current and future government customers. By combining forces, this partnership is expected to have a more diverse federal customer base and have access to significant contract vehicles to create a broad arena for success.
“We see the scale of projects increasing in size and scope across the government as there is greater adoption of technologies such as Agile, Data Analytics, and Cyber Security,” said Brad Antle, President and CEO, Salient Federal Solutions. “As a larger company, we increase our ability to take on larger programs and complete them successfully. We suspect that there will continue to be similar consolidation in the market and we wanted to be out in front. Our customers need the capabilities and solutions we offer. We have strengthened our ability to deliver on larger and more complex programs.”
Brad Antle, current President and CEO of Salient, will serve as the Chief Executive Officer of the newly formed Salient CRGT and Tom Ferrando, current President & CEO of CRGT, will serve as Salient CRGT’s President. Kevin Parker, from Bridge Growth Partners, will serve as Chairman of the Board of Directors.
The merger of Salient and CRGT fills a critical need, said Antle. “Bringing together two leading technology companies that combined deliver each year over $100 million in agile development, over $50 million of data analytics and data warehousing, plus strong capabilities in mobility and cyber, creates a more powerful and capable company that our customers can turn to,” said Brad Antle, President and CEO of Salient Federal Solutions. “We will deliver broad and deep capabilities that can help transform our customers in a more focused and responsive manner that is typically found in larger companies,” said Antle. “Salient CRGT will have the reach and capabilities of a large company with the responsiveness and agility of a mid-tier firm.”
“This is a unique opportunity to significantly expand the already strong capabilities of both organizations for the direct benefit of our customers,” said Antle. “As one team, Salient CRGT will have the deep resources and expertise to deliver a broader portfolio of innovative solutions and specialized services across the entire federal IT marketplace.”
“We have a deep understanding of the technology challenges facing federal civilian and defense agencies and fully embrace their missions as our own,” said Mr. Ferrando. “Salient CRGT is very well-aligned with Government IT spending priorities and the continuing focus on IT modernization across the broad spectrum of federal agencies, and we are now positioned better than ever to be the partner of choice for agency customers that demand value and successful outcomes.”
“This innovative deal—involving two savvy financial sponsors and management teams–reflects the ongoing transformation of the industry (via M&A) to yield stronger, more competitive entities that are now better positioned to thrive in today’s competitive and dynamic marketplace,” said Bob Kipps, Managing Director, KippsDeSanto & Co.
Walter Florence, Frontenac Managing Partner, said of the merger, “We look forward to working with both Brad Antle and Tom Ferrando, and are very pleased to be partnering with the Bridge Growth team. We have a shared view on the market opportunity, and this transaction reflects that, while strengthening and expanding Salient CRGT’s position as a premier government contractor.”
Co-founder and Managing Principal of Bridge Growth Partners, Alok Singh said, “The exciting combination of Salient and CRGT creates a broader platform from which to pursue additional growth opportunities while leveraging the ongoing consolidation of the federal IT services industry. We look forward to supporting Salient CRGT’s leadership team and are delighted to be partnering with Frontenac.”
“Federal customers want a responsive, reliable, full-service contractor that can help them reduce their cost of doing business in addition to reducing their risks. Salient CRGT will provide immediate benefits as we integrate the two companies and make us even more cost competitive for new opportunities,” added Tom Ferrando, President and CEO of CRGT. “Our current customers will have access to broader and deeper capabilities that can enhance our value to them where we have built a trusted relationship. They will now see the full suite of capabilities and solutions we can offer as a combined Salient CRGT.”
Related: Brad Antle of Salient Federal Solutions on the Interconnected World of the Internet of Everything, E&Y Entrepreneur Of The Year Greater Washington Award Winners Announced At Ritz Carlton Tysons Corner
