PAE to Merge with Gores Holdings III  

John Heller, PAE

Platinum Equity portfolio company PAE, an outsourced solutions provider, has announced an agreement to merge with Gores Holdings III, a special purpose acquisition company sponsored by an affiliate of The Gores Group. 

Upon closing, this transaction will introduce PAE as a publicly listed company, with an anticipated initial enterprise value of approximately $1.55 billion or 8.9x the company’s estimated 2020 pro forma adjusted EBITDA of approximately $174 million. 

PAE CEO John Heller said the move positions the firm for further growth.

“Thanks to Platinum Equity and the hard work of our employees around the world, PAE has accomplished a lot over the past three years and is well prepared to take advantage of the opportunities ahead,” he said. With this next chapter, we will have the clear ability to accelerate our strategic plan and invest in our continued growth. 

Platinum Equity Partner Louis Samson said the transaction combines PAE’s strong track record of successful M&A and a de-levered balance sheet with the public company currency of a newly listed business, which will position the company to participate in the ongoing consolidation taking place in the government services sector.” 

Founded in 1955, PAE is a provider of mission-critical services to the U.S. government, armed forces and international customers, including the State Department, Army, Navy, Air Force, NASA and others. 

The government services sector continues to experience positive momentum, and PAE is well positioned to accelerate its growth and margin expansion, said Mark Stone, CEO of Gores Holdings III. 

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