CRGT Merges With Salient Federal Solutions


CRGT will merge with Salient Federal Solutions. The new combined entity will focus on the public sector IT modernization market.

The new company will have a broad portfolio in Agile software development, data analytics, mobility, and cybersecurity. It is anticipated that Salient CRGT will generate approximately $375 million in annual revenue and employ more than 1,700 people. The combined entity will also expand its access to a number of contracting vehicles including Alliant, Encore, NIH CIO-SP3, DHS Eagle II, and Treasury TIPSS-4.

Salient CRGT will be jointly owned by private equity firms Bridge Growth Partners and Frontenac. Both firms previously owned the two separate businesses and combined them through a cashless all stock transaction. “A merger of equals is perhaps one of the more complex deals you can do instead of a straight buyout,” explains Alok Singh, Co-founder and Managing Principal of Bridge Growth Partners in an interview. “Both sides have to be comfortable with the deal and the leadership team.”

Brad Antle, President and Chief Executive Officer of Salient Federal Solutions, will serve as Chief Executive Officer of Salient CRGT and Tom Ferrando, President and Chief Executive Officer of CRGT, will serve as its President. Kevin Parker, from Bridge Growth Partners, will serve as Chairman of the Board of Directors.

Singh notes that by joining the two companies, the resulting expanded business portfolio of Salient CRGT will be able to compete head to head against competitors in the space.

The transaction is expected to close in the fourth quarter of this year and highlights the recent flurry of merger and acquisitions activity in big government IT.

Earlier this year, Accenture acquired Agilex Technologies, Inc., a provider of digital solutions for the U.S. federal government to enhance its cloud and analytics platform. LexisNexis, IBM and General Dynamics have also all done bolt-on deals to improve capabilities in this niche as well.