LMI has agreed to sell its for-profit subsidiary to a consortium of investment firms: Declaration Partners, Capitol Meridian Partners and 22C Capital.
The for-profit subsidiary will keep the LMI name, and the remaining entity will rebrand as a free-standing nonprofit NobleReach Foundation. The transaction is expected to close in third quarter of 2022.
“This new partnership will better position LMI to innovate and support the missions of its government customers. Declaration, Capitol Meridian, and 22C bring an extensive knowledge of the government marketplace and a deep technology expertise, strengthening our ability to help our customers solve their complex challenges,” said Doug Wagoner, LMI president and CEO.
“Our people are our greatest asset. This opportunity expands our ability to attract and retain the best talent while maintaining our winning LMI culture,” he added.
LMI was founded in 1961 to help the Defense Department resolve complex challenges. Today, the company provides digital services, advanced analytics, logistics and management advisory services across the federal government.
“The evolution and separation of LMI and NobleReach Foundation™ is a necessary force multiplier that accelerates the opportunity to realize LMI’s mission and charter — driving greater value for employees, government, and society through two unique, exceptional organizations,” said Lisa Disbrow, LMI’s chair.
In a joint statement, Adam Palmer of Capitol Meridian Partners, Elliot Wagner of Declaration Partners and Eric Edell of 22C Capital said they’ll support Wagoner and his team build on LMI’s 60-plus-year history of relationships and “accelerate the evolution of the platform into a digital-focused, tech-enabled solutions provider leveraging an in-house technology incubator to better serve its customers.”
“The federal government is in the early stages of a generational digital transformation of IT infrastructure,” they added. “Under the proven and inspired leadership of Doug Wagoner, LMI is well-positioned to continue to be the technology solutions provider of choice to a range of government agencies.”
Details of the transaction were not disclosed. KippsDeSanto & Co. served as the M&A adviser to LMI, and Macquarie served as M&A adviser to the investors.
