Carlyle buys government IT consultancy ManTech for $4.2 billion

17 May 2022 2 min. read

Private equity firm The Carlyle Group has agreed to acquire ManTech, a Herndon, VA-based IT consultancy focusing on the intelligence community, Pentagon, and federal civilian agencies, in an all-cash deal valued at $4.2 billion.

Founded in 1968, ManTech provides services in cybersecurity, data and analytics, enterprise IT, software development, systems engineering, intelligence missions support, and mission operations.

Nearly half of the firm’s 9,800+ employees are veterans, while many others are former members of the intelligence community, homeland security, and federal civilian agencies.

ManTech’s technology partners include Microsoft, AWS, and Google Cloud. The firm had $2.55 billion in revenue in 2021 and saw year-over-year growth of 6.7% to reach $676 million in revenue for Q1 2022.

The deal will give Carlyle additional exposure to the hot cybersecurity and government IT consulting markets.

Carlyle buys government IT consultancy ManTech for $4.2 billion

ManTech shareholders will receive $96 per share in cash, a 32% premium on ManTech’s closing share price of $72.82 on February 2 – a day before leaked reports of a potential deal caused share prices to rally. The transaction is expected to close in the second half of 2022.

“ManTech’s talented employees and leadership team have built a remarkable Company with strong market positions across the federal government,” Dayne Baird, managing director of Carlyle’s aerospace and government services team, said. “Through this partnership, we look forward to leveraging our sector expertise and resources to accelerate growth and innovation and to drive greater value for customers and employees.”

Carlyle in December bought CNSI, a Greenwich, CT-based health IT consulting catering to state and federal clients, from Alvarez & Marsal Capital Partners. The consultancy booked approximately $200 million in annual revenue prior to the transaction.

“Following a comprehensive review of strategic alternatives, our Board determined that this transaction is in the best interest of our shareholders and provides them with the most compelling value maximization outcome, offering liquidity at a significant premium,” said Kevin Phillips, president and CEO of ManTech. “We look forward to leveraging Carlyle’s deep knowledge and experience investing in and growing companies, as we deliver stronger outcomes for our customers and increased opportunities for our employees.”

ManTech in February announced co-founder George Pedersen was retiring from his position on the company’s board and as chairman emeritus. That same month, Reuters reported Pedersen was exploring options to sell his controlling stake in firm.