DLH has acquired privately held Grove Resource Solutions, Inc., a provider of cloud-based enterprise modernization and cybersecurity solutions to civilian and military federal agencies.
“We are thrilled to begin a new era at DLH with the acquisition of GRSi,” said Zach Parker, DLH president and CEO. “Through this landmark transaction, we elevate our information technology and engineering capabilities, while adding the scale we need to thrive in an increasingly competitive marketplace.
GRSi serves agencies like the National Institutes of Health, the U.S. Navy, Marine Corps and others. The company was purchased for $185 million, which includes $178 million of cash and $7 million of equity.
“GRSi’s high-end IT and technical capabilities serving scientists, researchers, and system engineers have earned the company a reputation for excellence, and we expect that our unified organization will build upon those achievements to drive accelerated growth for DLH in the near- and long-terms,” Parker said.
“GRSi’s highly credentialed workforce features some the best and brightest technology leaders in our industry,” he added. “We could not be more excited to welcome the entire team into the DLH family.”
DLH estimates GRSi will contribute roughly $140 million of annualized revenue. Following the acquisition, GRSi will be a wholly owned subsidiary of DLH Holdings Corp. Current GRSi key operations leaders are expected to stay with DLH in leadership roles.
“From culture and values, to market presence and capabilities, we believe that DLH is an ideal partner for GRSi,” said David Affeldt, president and CEO of GRSi. “Working with Zach and his team has reinforced our belief that this transaction will yield an impressive platform for achieving our joint objectives for years to come. DLH has the capabilities, customers, and culture that will enhance those of our own ⏤ resulting in a dynamic, improved provider of essential services to federal customers.”