Houlihan Lokey Advises OMNITEC Solutions

Houlihan Lokey is pleased to announce that OMNITEC Solutions, Inc. (OMNITEC) has been acquired by Gryphon Technologies, LC (Gryphon), a portfolio company of AE Industrial Partners (AEI). The transaction closed on December 30, 2019.

Headquartered in Bethesda, Maryland, OMNITEC is a leading provider of enterprise technology, cloud, analytical, strategic advisory, and advanced engineering solutions to the defense and federal healthcare communities. OMNITEC has a long track record of successfully supporting the Department of Defense web enterprise solutions and cloud initiatives and currently maintains more than 800 DOD websites. The company holds strategic partnerships with key industry players such as AWS, Microsoft, and Akamai, and is well positioned for continued rapid growth as the government continues to adopt cloud-based initiatives. OMNITEC also delivers a broad range of strategic analysis, engineering, integration, installation, and maintenance services in support of the U.S. Navy where it has supported both NAVSEA and NAVAIR for more than 15 years and maintains a presence on every single naval ship class.

Serving as the exclusive financial advisor to OMNITEC, Houlihan Lokey leveraged its unique insight to consummate a transaction with substantial strategic value to all parties. The sale of OMNITEC to Gryphon also highlights the positive market dynamics for well-positioned government services and technology businesses and illustrates several key themes:

• The transaction emphasizes the continued demand for companies with strong past performance delivering next-generation technologies, namely digital, analytics, and cloud-based capabilities. As government organizations, particularly mission-focused agencies such as the DOD, accelerate the migration of their core legacy systems to more modern architectures, companies with proven track records of delivering next-generation systems at scale will continue to receive strong interest in the M&A market.
• Market participants continue to place valuation premiums on well-positioned businesses with strong credentials competing in full and open environments. OMNITEC derives approximately 95% of its revenue from prime contracts and 100% of its revenue from full and open awards. The company also holds a highly attractive portfolio of contract vehicles including CIO-SP3.

With the addition of OMNITEC, Gryphon's customers will benefit from expanded technical and program management capabilities while penetrating additional key customers. OMNITEC's skilled and technical workforce will seamlessly transition and help Gryphon solve the country's most urgent national security needs.

Headquartered in Washington, D.C., Gryphon is a premier engineering services firm with expertise in warfare systems and integration, naval architecture and marine engineering, program management, test and evaluation, and logistics. The company's spectrum of services supports a variety of system acquisition programs that are critical to national security. Gryphon is consistently recognized by Inc. as one of America's Fastest-Growing Private Companies. With more than 700 current employees, Gryphon provides unmatched experience and knowledge to NAVSEA and its warfare centers.

AEI is a private equity investment firm specializing in aerospace, defense, and government services; power generation; and specialty industrial markets. The firm is one of the largest private equity funds in the government services end market and has strong experience investing in businesses with similar capabilities as OMNITEC. AEI has successfully closed 41 transactions in the past four years.

Houlihan Lokey's Aerospace, Defense & Government (ADG) practice is a leading M&A advisor to aerospace, defense, and government services companies in the United States. Since 2016, the firm has closed more than 65 transactions worth more than $10 billion in enterprise value. With a staff of approximately 30 investment bankers in Washington, D.C., London, and Los Angeles, Houlihan Lokey's ADG practice is among the largest dedicated industry banking groups worldwide.