Arlington Capital Partners has agreed to purchase Systems Planning and Analysis from CM Equity Partners and SPA Management for an undisclosed sum and plans to combine SPA with its portfolio company MCR to create an independent advisory firm focused on supporting the missions of government and national security customers.
William Vantine, president and CEO of SPA, will lead the combined company, which will operate with over 1,200 employees, 125 proprietary software platforms and approximately $350 million in revenues, the companies said in a joint release published Wednesday.
The companies expect the transaction to conclude in the next few weeks, subject to regulatory approvals and other customary closing conditions.
SPA, which was established in 1972, provides systems engineering, strategic advisory, advanced analytics, program management, industrial policy and modeling and simulation support to defense and government clients in the U.S. and Australia.
McLean, Virginia-based MCR provides engineering, software development and cost analysis services for U.S. civilian and defense agencies, NATO and European ministries.
Vantine, who will serve as president and CEO of the combined entity, said SPA is excited to partner with Arlington and MCR to form a new company in the technical government advisory ecosystem.
“By leveraging the historical individual successes across each of our companies and pooling our organic investments in facilities, R&D and our employees, we are excited to move out to achieve our strategic vision after closing,” he added.
David Wodlinger, a partner at Arlington, said the combined company will build on the intellectual property, geographies and complementary client bases of SPA and MCR.
MCR CEO Bill Parker said the proposed combination will provide new offerings and capabilities to the company’s government and defense clients and career opportunities for MCR employees.
Sheppard Mullin and Morrison Foerster act as legal advisers to Arlington. Baird serves as financial adviser to SPA, while Squire Patton Boggs and Rees Broome advise the company on the deal’s legal aspect.
