CoVant
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CI Capital-Backed CoVant Acquires A-T Solutions
By Daniel Hausmann - LBO Wire
3/6/2008 – CI Capital Partners-backed CoVant Technologies LLC, which looks to acquire government-related IT companies, has bought out security trainer A-T Solutions Inc.
Specific terms of the deal weren't disclosed, though the debt and equity deal is worth less than $100 million, according to CoVant Chief Executive Joseph Kampf.
A-T Solutions was bought out from the company's management and private individuals, with A-T Solutions executives reinvesting in the combined entity as part of this transaction. Wachovia Corp. and SunTrust Banks Inc. provided the debt.
This is the first acquisition for McLean, Va.-based CoVant, which was founded in 2006, receiving a $200 million equity infusion from majority shareholder CI Capital Partners, company co-President Mark Heilman and other management. CI Capital provided 94% of the equity for CoVant, though its stake in the company is less because of executive incentives, according to Steven Lefkowitz, president of CI Capital.
A-T Solutions provides training, software and hardware for dealing with improvised explosive devices and weapons of mass destruction. The company's customers include the U.S. Department of Defense, state and local governments, law enforcement agencies and private entities such as petroleum and chemical companies. The Fredericksburg, Va.-based company employs 200 "subject matter experts." Kampf declined to disclose the company's revenue but did say it was profitable.
CoVant, which began operations in 2007, intends to acquire one or two additional platform companies and make acquisitions through those. It will consider buying companies with enterprise values of $10 million up to several hundred millions of dollars, Lefkowitz said.
New York-based CI Capital spun out of Caxton Associates LLC late last year with about $100 million in committed equity. The firm hasn't discussed fund-raising plans to date.
Reach CI Capital at 212-752-1850.