LMI CEO Doug Wagoner Talks Gen AI, M&A

Artificial intelligence is undoubtedly one of the most disruptive and transformative technologies of our time. AI advancements are being made at unprecedented speeds, redefining the tech landscape and changing the pace of innovation. But while there’s a lot of hype surrounding AI today, GovCon leaders agree that it will one day be as integrated into our lives and operations as the internet.

“I think eventually AI is going to be table stakes. Right now, it’s a shiny object, it’s the really cool thing. But I think this is going to be table stakes for any solution that any of us in this room provide to government,” said LMI CEO Doug Wagoner, addressing a crowd of GovCon leaders at the Raymond James 2024 Defense and Government Conference.

Find out how LMI is leveraging emerging technologies like AI and machine learning for homeland security missions next month. LMI is the lead platinum sponsor for the Potomac Officers Club’s 2024 Homeland Security Summit on Nov. 13, and you won’t want to miss these insightful, productive conversations with leaders from DHS, CBP, TSA, CISA and other homeland security-focused agencies. Save your seat at the 2024 Homeland Security Summit today to join the discussion.

The Gen AI Revolution

AI — and more specifically, generative AI — is an area in which Wagoner, a five-time Wash100 Award winner, sees major opportunities for innovation. Earlier this year, LMI launched its gen AI platform LIGER to help government agencies streamline their operations and harness actionable insights.

“We were asked to solve a very critical challenge that the F-35 program was having — it grounded the whole fleet. And that was really how we came up with the solution, to create an LLM for logistics, which we know really, really well. And that solution has evolved to what we call LIGER,” Wagoner explained.

LMI has already sold its LIGER platform to multiple customers, including the Army, which has an enterprise license and is now using LIGER in a gen AI pilot program.

And although the commercial tech landscape has typically been at the forefront of AI innovation, Wagoner said the federal government is keeping pace with industry advancements.

“They are rapidly looking at gen AI,” said Wagoner of the federal government. “I’ve been doing this a long time, and the government always seemed to be a laggard in adopting technology. [With] gen AI, I want to say they’re probably right there with the private sector in adopting it.”

LMI’s M&A Outlook

In 2022, after more than four decades as a not-for-profit logistics management organization, LMI entered the for-profit arena. The strategic move marked a new chapter in the company’s history and launched LMI into a new phase of growth. Now, two years after LMI’s acquisition by Declaration Partners, Capitol Meridian Partners and 22C Capital, LMI is making its own strategic acquisitions.

LMI entered into the space market with its purchase of Synaptech in 2022. Then earlier this year, LMI acquired JJR Solutions, expanding the company’s presence with its Department of Veterans Affairs and Defense Health Agency customers. So what’s LMI’s next buy?

“With M&A, we’re not buying revenue. We’re not buying growth. Most of our double digit growth every year has been organically generated. What we buy is access, presence and influence,” Wagoner shared.

Wagoner said there won’t be any “hard left turns” coming up for LMI. The company is focused on its current growth trajectory and sticking to “access, presence and influence” as a beacon to guide its M&A activity.

The LMI CEO said that looking ahead in the next two to three years, he would like to win more space business, diversify LMI’s Intelligence Community business and bolster the company’s cyber capabilities.

For more insights into LMI’s future, priorities and strategies, watch our video interview with Doug Wagoner.