GovernmentCIO has agreed to purchase Salient CRGT from Bridge Growth Partners and Frontenac for an undisclosed sum to form a combined company that will offer information technology products and digital services meant to meet the evolving priorities and requirements of federal government clients.
GovCIO CEO Jim Brabston will lead the combined entity upon the transaction’s closing that is expected in the third quarter of 2021, pending regulatory approvals and other customary closing conditions, the companies said in a joint release published Thursday.
The combined company will operate as Government CIO with over approximately $700 million in 2021 revenues and more than 2,200 employees.
“Together, we are confident that we have the scale and additional capabilities to deliver even greater value to a broader set of federal customers. We are delighted to partner with SCRGT’s leadership team and employees moving forward,” said Brabston.
Salient CRGT CEO Tom Ferrando will serve as a board member and Phil Nolan, an industry veteran and board chairman of Salient CRGT, will chair the combined company.
GovernmentCIO is a digital platforms provider in the federal health IT services market and is backed by private equity firm Welsh, Carson, Anderson & Stowe.
Established in 1998, Salient CRGT is a Fairfax, Virginia-based provider of cloud, data analytics, cybersecurity, Agile software development and infrastructure platforms and services to national security, civilian and federal health agencies.
DC Advisory and Kirkland & Ellis serve as financial adviser and legal counsel, respectively, to Government CIO and WCAS.
Robert W. Baird & Co. and Guggenheim Securities advise Salient CRGT on the transaction’s financial aspect, while Kirkland & Ellis and Willkie, Farr & Gallagher act as the company’s legal advisers.
