Sev1Tech Jumps into the C4ISR Space with Acquisition

Woodbridge IT and cybersecurity services company Sev1Tech LLC is expanding its operations into the command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) realm, acquiring Engineering Solutions and Products LLC in a deal announced Wednesday.

Terms of the acquisition were not disclosed, but the purchase of the Chantilly-based company combines Sev1Tech’s expertise in areas like technology modernization, cloud management and enterprise cybersecurity and pairs it with ESP’s similar tech prowess, plus skills like systems engineering, supply-chain management and defense mission support.

“As part of our mid-tier strategy, this transaction provides Sev1Tech with unique fielding and tactical capabilities. We are excited to demonstrate our commitment to customer service and introduced our enhanced IT capabilities for the U.S. Army,” said Sev1Tech CEO Bob Lohfeld in a statement.

Sev1Tech — which is backed by investments from both New Jersey firm DFW Capital and Chevy Chase-based Enlightenment Capital — already counts a number federal and defense agencies among its public sector customers through its presence on contract vehicles like the General Services Administration’s IT Schedule 70 and Alliant 2, as well as Army and Defense Logistics Agency cloud and technology contracts.

By acquiring ESP, the company broadens those capabilities and gains access to other IT modernization contracts, like the Navy’s $10 billion SeaPort Enhanced (SeaPort-e) vehicle, GSA’s OASIS and the Army’s Other Transaction Authority (OTA) contract, the Consortium for Command, Control, and Communications in Cyberspace (C5), which focuses on developing new cybersecurity and C4ISR prototype solutions for defense agencies.

As the Department of Defense looks to upgrade its IT infrastructure to support expanded cloud capabilities and emerging technologies like artificial intelligence to match its competition with adversaries like Russia and China, C4ISR represents a strong area for market growth and a prominent target for M&A.

Houlihan Lokey advised ESP on the acquisition. Executives from both companies weren’t immediately available for comment before press time.