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March 24, 2016
martinwolf Transaction Analysis
Sirius Computer Solutions Acquires Force 3
 
Financial Information
  • Not Disclosed
Transaction Facts
  • Sirius Computer Solutions, a national IT integrator, announced today that it acquired network security company Force 3.
  • Terms of the deal were not disclosed, but according to the transaction announcement Force 3 has approximately 170 employees and approximately $260 million in revenue. The company is headquartered in Crofton, Maryland.
  • The deal, scheduled to close March 31, is Sirius's fourth major acquisition in the last 18 months. Force 3 will remain in Crofton and is expected to keep all of its employees as a wholly owned subsidiary of Sirius focused on security services and federal contracting.
Bringing Proven Success to an Established Player
  • Sirius Continues to Diversify: Sirius has made several recent acquisitions that have significantly expanded both its core offerings as well as the geographies served. Late 2014 saw the acquisition of Brightlight Consulting, a big data and BI firm, while 2015 saw the acquisitions of technology solution provider Varrow and select assets from Avnet's digital solutions and services practice.
  • Proven Offering in a Hot Space: Cybersecurity continues to be a valuable space attracting significant attention from buyers. Force 3, ranked No. 79 on CRN's 2015 Solution Provider 500 list, differentiated itself through its security offerings which no doubt made it an especially appealing target.
  • Deploying Resources to Maximize Returns: Sirius was acquired by private equity firm Kelso & Co. in September, and at the time of the investment Sirius CEO Joe Mertens said that he expects the company to complete at least two acquisitions per year. Before the acquisition of Brightlight Consulting, Sirius had not made any acquisitions since 2010.
  • A Complementary Fit: This acquisition provides both Sirius and Force 3 with additional capabilities and certifications with which to serve their existing clients. The transaction also bolsters Sirius's capabilities in the Mid-Atlantic region and the Federal marketplace, furthering a formidable presence in the IT space that was named No. 28 on CRN's 2015 Solution Provider 500.
For more information about this transaction,  click here to read the press release.

To read an interview martin wolf conducted with Sirius President and CEO Joe Mertens in November 2015, click here .

martinwolf was not the advisor in this transaction.

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With offices in the San Francisco Bay Area, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 140 transactions in nineteen countries and sold seven divisions of Fortune 500 companies. 

 

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