M&A Deal Summary

HKW and Everberg Capital Acquire CIS Secure

On April 20, 2021, private equity firms HKW and Everberg Capital acquired technology hardware company CIS Secure from Capitala Group and Acorn Growth Companies

Acquisition Highlights
  • This is HKW’s 5th and Everberg Capital’s 1st transaction in the Technology Hardware sector.
  • This is HKW’s 40th and Everberg Capital’s 11th transaction in the United States.
  • This is HKW’s 1st and Everberg Capital’s 1st transaction in Virginia.

M&A Deal Summary
Date 2021-04-20
Target CIS Secure
Sector Technology Hardware
Buyer(s) HKW
Everberg Capital
Sellers(s) Capitala Group
Acorn Growth Companies
Deal Type Secondary Buyout
Advisor(s) Harris Williams (Financial)

Target

CIS Secure

Ashburn, Virginia, United States
CIS Secure is a provider of secure communications equipment and computing solutions for a wide range of U.S. government customers. CIS is focused on modifying Commercial-off-the-Shelf (“COTS”) communications and network equipment to support stringent government requirements to protect sensitive and classified information from illicit capture or manipulation. CIS Secure was founded in 1992 and is based in Ashburn, Virginia.

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Buyer(S) 2

Buyer

HKW

Indianapolis, Indiana, United States

Investor Investor Investor Investor

Category Private Equity Firm
Founded 1903
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Hammond Kennedy Whitney & Company (HKW) is a private equity firm focused on making control investments in mid-sized, 'market leading' companies generating sales of $5 to $75 million. HKW looks for companies with low risk for technological obsolescence, defined growth strategies, and talented management who want to own equity. Target transaction situations include industry consolidations, corporate divestitures, generational changes in ownership, growth equity, management buy-outs and recapitalizations. HKW prefers North American based opportunities. HKW dates back to 1903, however the Firm transitioned from sole to institutional investors in 2001. The Firm has offices in Indianapolis and New York City.

DEAL STATS #
Overall 49 of 54
Sector (Technology Hardware) 5 of 5
Type (Secondary Buyout) 5 of 6
State (Virginia) 1 of 1
Country (United States) 40 of 44
Year (2021) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-02-12 Xirgo

Camarillo, California, United States

Xirgo is a provider of wireless telematics modules for tracking, monitoring, protecting, and controlling remote assets and workers supporting the Internet of Things (“IoT”) growth sector. Xirgo Technologies was founded in 2005 and is based in Camarillo, California.

Sell $400M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-08-11 Fresh Direct Produce

Vancouver, British Columbia, Canada

Fresh Direct Produce is a distributor of fresh, ethnic, tropical, organic, and specialty produce. Fresh Direct Produce distributes 1,000+ fruit and vegetable items to the Western Canadian market. Fresh Direct Produce was founded in 2003 and is based in Vancouver, British Columbia.

Sell -
Buyer

Everberg Capital

Investor

Category Private Equity Firm
Founded 2019
Size Small
Type Sector Agnostic
DESCRIPTION

Everberg Capital is a private investment firm that looks to partner with family-owned businesses, entrepreneurs, and financial sponsors with capital for acquisition financing, leveraged buyouts, growth opportunities, and recapitalizations. Broad areas of interest include industrials, business services, consumer products/services, and healthcare. Everberg can invest across the capital structure and seeks to commit $10 to $100 million per transaction. Everberg Capital was formed in 2019 and is based in New York City.

DEAL STATS #
Overall 13 of 18
Sector (Technology Hardware) 1 of 1
Type (Secondary Buyout) 4 of 4
State (Virginia) 1 of 1
Country (United States) 11 of 16
Year (2021) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-09-02 Alliance Spacesystems

Los Alamitos, California, United States

Alliance Spacesystems is a provider of high-performance composite structures for spacecraft and other high-tech applications where strength-to-weight ratio, superior stiffness and dimensional stability are key requirements. Alliance Spacesystems is based in Los Alamitos, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-05-28 Atlas Vineyard Management

Napa, California, United States

Atlas Vineyard Management serves vineyard owners and wineries across California, Oregon, Washington, and Texas. Atlas Vineyard Management’s offerings include vineyard development, vineyard farming, grape sales, and viticulture services. Atlas Vineyard Management was founded in 2012 and is based in Napa, California.

Buy -

Seller(S) 2

SELLER

Capitala Group

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor

Category Asset Manager
Founded 1998
PE ASSETS 2.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Capitala Group is an asset manager that provides equity and mezzanine capital to mid-sized companies valued up to $250 million. Funds are generally used to support growth needs, add-on acquisitions, management/leveraged buyouts, and recapitalizations. Capitatala will invest across the US, but generally targets opportunities located in the Southeast. Industry preferences include building products, business services, consumer/reteail, general industrial, healthcare, and technology. Prospective companies typically have revenues greater than $10 million and EBITDA of at least $3 million. Capitala was formed in 1998 and is headquartered in Charlotte, North Carolina.

DEAL STATS #
Overall 44 of 53
Sector (Technology Hardware) 2 of 2
Type (Secondary Buyout) 15 of 19
State (Virginia) 1 of 2
Country (United States) 43 of 52
Year (2021) 4 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-04-16 Point Broadband

West Point, Georgia, United States

Point Broadband is an internet service provider to residential and business customers in rural and suburban America. Point Broadband was established in 2016 and is based in West Point, Georgia.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-05-19 PEOPLEASE

Mount Pleasant, South Carolina, United States

PEOPLEASE is a full-service professional employer organization Small-to-medium-sized businesses, rapid-growth companies, and established enterprise operations alike benefit from PEOPLEASE ’s large employee base with customized yet cost-effective solutions for payroll, human resources, benefits, tax, and finance administration, safety, and risk management. PEOPLEASE was founded in 1994 and headquartered in Mount Pleasant, South Carolina.

Sell -
SELLER

Acorn Growth Companies

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 2005
Size Small
Type Sector Focused
DESCRIPTION

Acorn Growth Company is a private equity group focused on aerospace and defense opportunities. Acorn looks specifically for companies engaged in aerospace parts manufacturing, aircraft modification and upgrades, engineering services, logistics, procurement and maintenance, repair, and overhaul. Acorn Growth was established in 2005 and is headquartered in Oklahoma City, Oklahoma.

DEAL STATS #
Overall 4 of 6
Sector (Technology Hardware) 1 of 1
Type (Secondary Buyout) 1 of 3
State (Virginia) 1 of 1
Country (United States) 3 of 5
Year (2021) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-12-17 Aerospheres

Middlesex, United Kingdom

Aerospheres (UK) Ltd. is a distributor of aerospace aftermarket chemicals, composites and other consumable materials for maintenance applications and MRO service providers. Aerospheres (UK) Ltd. was established in 1991 and is based in Middlesex, United Kingdom.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-01-31 Black Sage

Boise, Idaho, United States

Black Sage is a defense technology integrator specialized in autonomous airspace protection solutions to take down small remote piloted aircraft systems. Black Sage employs a hardware-agnostic approach to integrating best-of-breed sensors with its proprietary artificial intelligence-enabled target tracking and defense automation systems to provide adaptable, end-to-end C-UAS systems. Black Sage was founded in 2014 and is based in Boise, Idaho.

Sell -
Mergr

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