Madison Dearborn Partners (“MDP”) and CoVant Management (“CoVant”) announced today that they have acquired LinQuest Corporation (“LinQuest” or the “Company”), a leading provider to the U.S. defense and intelligence communities of space systems technology solutions, including large-scale systems engineering & integration, software and cyber systems development, complex systems modeling & simulation, data analytics, and turnkey mission solutions. LinQuest management, including CEO Dr. Leon Biederman, will retain a significant minority ownership position in and will continue to lead the Company. Financial terms of the transaction were not disclosed.
“LinQuest is a unique, differentiated technology company serving critical national security programs in the growing space market,” said Matt Norton, a Managing Director on MDP’s Business & Government Software & Services team. “Maintaining U.S. space superiority and ensuring the resilience of our nation’s space-based defense and intelligence technology infrastructure have become heightened government priorities addressing global threats, and we look forward to working with LinQuest’s experienced management team and talented employees to drive the Company’s growth.”
Headquartered in Los Angeles, with offices throughout the country, including the National Capital Region and Colorado Springs, LinQuest designs, develops and delivers state-of-the-art engineering and advanced technology solutions to Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) programs of national importance. LinQuest’s core competencies are in military satellite communications engineering, development, integration, testing, and operations; space flight and ground software; tactical communications networks; cyber operations; space superiority; battlespace awareness; and position, navigation, and timing (“PNT”), placing it in some of the highest priority defense and intelligence growth markets.
“Partnering with MDP and CoVant enables us to expand our R&D capabilities, improve our business development resources and enhance our customer offerings, thereby accelerating our growth both organically and through future acquisitions,” said Dr. Leon Biederman, CEO of LinQuest. “Both MDP and CoVant have a demonstrated track record of success partnering with similar government technology companies and generating significant value. We are excited to gain access to their deep industry expertise and work together to realize LinQuest’s next chapter of growth.”
MDP is a leading private equity firm that invests across a broad spectrum of industries, including business and government software and services, while the CoVant team has expertise in acquiring and growing companies in the federal government technology marketplace. MDP and CoVant formed a partnership in 2012 to identify and secure equity investments in the federal government technology services and solutions market. In 2014, this partnership invested in and carved out LGS Innovations LLC (the former federal division of Bell Labs) from Alcatel-Lucent and has since grown LGS into one of the leading independent providers of secure networking, cybersecurity, photonics and communications technologies to government and commercial organizations.
“LinQuest is a highly attractive business in the dynamic space situational awareness, PNT, and satellite communications sector,” said Joseph Kampf, Chairman and Chief Executive Officer of CoVant. “We believe LinQuest’s differentiated technology capabilities in desirable space end-markets will benefit from our focus on growing businesses through both organic and strategic acquisition initiatives. We are excited to continue our partnership with MDP and apply our proven operating strategy as we work with LinQuest’s executive team and MDP to help LinQuest achieve continued success.”
Baird served as LinQuest’s financial advisor with Alston & Bird LLP, Squire Patton Boggs, and Drinker Biddle & Reath LLP serving as legal advisors. Kirkland & Ellis LLP and Crowell & Moring LLP served as legal advisors to MDP and CoVant. As part of the transaction, Bank of America Merrill Lynch is providing a credit facility to support the Company’s continued growth.
About Madison Dearborn Partners, LLC
Madison Dearborn Partners, LLC (MDP), based in Chicago, is a leading private equity investment firm in the United States. Since MDP’s formation in 1992, the firm has raised seven funds with aggregate capital of approximately $23 billion and has completed approximately 130 investments. MDP is currently investing out of its most recent fund, $4.4 billion MDCP Fund VII, in businesses across a broad spectrum of industries, including business and government software and services; basic industries; financial and transaction services; health care; and telecom, media and technology (TMT) services. For more information, please visit https://www.mdcp.com.
About CoVant Management
Founded by former executives of Anteon International, CoVant Management partners with and provides strategic, financial and operational resources to companies specializing in technology and related solutions that serve the needs of government customers. With an experienced team of business executives and a respected board of former government and military leaders, CoVant Management delivers a unique and highly strategic approach to maximizing company growth and value. Visit www.covant.com for more information.