DFW Completes Sale of Sev1Tech to ERT, a Macquarie Capital-backed company

DFW Capital Partners (“DFW”) is pleased to announce that it has completed the sale of its portfolio company, Sev1Tech (“Sev1Tech”, or the “Company”) to ERT, a Macquarie Capital-backed company.

Sev1Tech is a provider of IT modernization, cloud, cybersecurity, engineering, training and program support services to U.S. government agencies and major commercial organizations. The Company supports government organizations as they modernize legacy systems, enhance cyber resilience and accelerate digital adoption across complex enterprise environments. The combination with ERT will enable Sev1Tech personnel to continue supporting existing customers while contributing to expanded IT and digital engineering offerings.

In 2019, DFW invested in Sev1Tech, with a significant rollover investment from the Company’s founder, Bob Lohfeld. Since then, DFW has worked with the management team to drive significant operational improvements, including adding critical C-suite level talent, professionalizing back-office systems, infrastructure, and processes, and bolstering the Company’s business development, IT, HR, and finance / accounting functions. During this investment period, Sev1Tech achieved significant growth, completed two highly strategic acquisitions, and expanded both its capabilities and customer base. The sale represents a significant liquidity event for the firm’s 2016 vintage fund, DFW Capital Partners V, LP.

“DFW provided us with invaluable guidance over the past several years and helped build the Company in a way that set us up for scalable growth. They acted as true partners to our team, providing us with support around M&A, incentive structures, back-office professionalization efforts, and more, which ultimately allowed us as operators to stay focused on the mission,” stated Bob Lohfeld, Chief Executive Officer of Sev1Tech.

“We are proud to have partnered with Sev1Tech in building an industry-leading provider of IT modernization and digital transformation services. It has been a pleasure watching this team and Company grow not only into a high-quality service provider, but also into a trusted partner to defense and government agencies, supporting highly critical and complex space, defense and national security initiatives. The team has always shown extraordinary dedication to the mission, and we are glad to have found a buyer in ERT that shares that same commitment. We wish the Company and ERT great success in their next phase of growth,” said Doug Gilbert, Partner at DFW.

Enlightenment Capital was a minority investor in the Company, and KippsDeSanto & Co. and Holland & Knight represented the Company as advisors for this transaction.