Deal Details

Sevatec Merges With Octo

Technology & Services

Sevatec combined with Octo, a portfolio company of Arlington

Summary

Sevatec, Inc. (“Sevatec” or the “Company”), has combined with Octo, a portfolio company of Arlington Capital Partners (“Arlington”).

Baird served as exclusive financial advisor to Sevatec, Inc. on this transaction.

About

Sevatec is a leading provider of mission-critical software development solutions and digital modernization services to the Federal Government. Sevatec’s Digital Software Supply Chain, ShiftUp™, which brings together commercial best practices and advanced technology tools in Agile delivery, human-centered design, DevSecOps, Cloud, Security, and Data, has helped modernize several hundred applications across the Federal Government. With almost $400 million in recent prime contract wins, highly strategic contract vehicles, and differentiating technologies such as ShiftUp™, Sevatec has solid momentum in key markets. Founded in 2003 on the concept of “Seva,” meaning “to serve a greater purpose,” the Company serves the missions of Homeland and Law Enforcement agencies, Department of Defense, General Services Administration, Department of Transportation, and multiple civilian departments and agencies. Sevatec is headquartered in Fairfax, Virginia.

The combination of Octo and Sevatec creates the premier pure-play IT Modernization provider to the Federal Government, establishing a highly agile partner to government customers that can address complex technology challenges with innovation, high-touch service, and substantial technical and operational resources. The combined organization has grown every year since inception and today generates nearly $300 million in revenue and employs approximately 1,100 skilled employees dedicated to solving technical challenges for government customers across the Defense, Intelligence, National Security, Federal Health, and Civilian marketplaces.

Sevatec’s combination with Octo illustrates the following buyer priorities in Government & Defense M&A: focus on software delivery and IT modernization capabilities at scale, strategic alignment with the government’s digital transformation priorities, proven ability to win highly strategic contracts and contract vehicles on an unrestricted basis, and a strong alignment and compatibility of cultures and mission focus.

Octo is a technology firm dedicated to solving the Federal Government’s most complex challenges with Artificial Intelligence, Blockchain, Agile DevSecOps, Cloud Engineering, Open Source, Cybersecurity, and Data Science solutions. Octo enables the government to modernize faster and meet the needs of rapidly changing missions with agility. Octo’s approach is collaborative, and its outcomes are superior. Octo is headquartered in Reston, Virginia.

Arlington Capital Partners is a private equity firm that is currently investing out of Arlington Capital Partners V, L.P., a $1.7 billion fund. Arlington has managed approximately $4.0 billion of committed capital via five investment funds. Arlington is focused on middle market investment opportunities in growth industries including government services and technology, aerospace and defense, health care, and business services and software. Arlington is headquartered in Washington, D.C.

Technology & Services

Sevatec combined with Octo, a portfolio company of Arlington