New York, NY – November 3, 2003 – New Mountain Partners, L.P. (“New Mountain”), a leading New York based private equity fund, today announced the closing of an $84 million investment to purchase majority control of Intellisys Technology Corp. (“ITC” or the “Company”).
ITC, headquartered in Chantilly Virginia, is a rapidly growing, privately held company in the federal information technology (“IT”) services sector. The Company provides end-to-end enterprise solutions to federal government agencies. Current customers include the Department of Defense, the Department of Homeland Security, the Department of State, the Department of Justice, the Department of Treasury, the Department of Veterans Affairs, the Executive Office of the President, the Securities and Exchange Commission, and the Department of Health and Human Services. A number of Intellisys’ customer relationships have been in place for more than twenty years.
Steve Baldwin, CEO of Intellisys said, “The ITC management team enthusiastically welcomes this transaction with New Mountain. New Mountain has a proven ability to identify the highest quality growth companies and to add real, strategic value to these companies. ITC has already become one of the fastest growing companies in the federal IT sector and our enterprise solution methodology is increasingly being sought after by government agencies. Now, with New Mountain’s backing, ITC will have the financial and strategic support we need to emerge as a clear leader in our $50 billion marketplace.”
Steve Klinsky, Founder and Chief Executive Officer of New Mountain stated “New Mountain believes that the federal information technology services sector is an attractive and economically defensive growth industry, and we believe that ITC has the potential to be an extremely valuable participant within it. The company has grown at approximately a 25% compound rate since 1998 without acquisitions, and has achieved some of the industry’s highest returns on assets, highest returns on investment and highest profits per employee. Most importantly, when we spoke to Intellisys’ government agency customers during our due diligence, they gave ITC exceptionally high marks for quality, service and customer satisfaction. We look forward to helping the ITC management build their company to new heights over the years ahead.”
The ITC purchase will be New Mountain’s fifth investment since its founding in January 2000. This investment, like New Mountain’s previous four investments, was negotiated on a proactive and exclusive basis outside of the traditional auction process.
The ITC investment will be New Mountain’s second investment of a Virginia-based company. In May 2001, New Mountain invested $115 million in acquired control of Strayer Education Corp. (NASD: STRA) in Arlington, Virginia. The market value of Strayer has increased from approximately $400 million to approximately $1.5 billion since New Mountain announced its intention to invest.
About Intellisys Technology Corp.
Intellisys Technology Corp., based in Chantilly, Virginia, is an information technology services firm serving the U.S. Federal Government market. Intellisys focuses on providing enterprise solutions consisting of software engineering, network engineering, management consulting, technical support, and technology deployment services.
About New Mountain Capital
New Mountain Capital LLC is a private equity firm seeking long-term capital appreciation through direct investment in growth equity transactions, leveraged acquisitions and management buyouts. New Mountain Partners, L.P. is a private equity fund sponsored by New Mountain Capital.
New Mountain’s primary strategy is to seek out the highest quality growth leaders in carefully selected industry sectors, and then to work intensively with management to build the value of these companies. New Mountain’s website is nmcapdev.wpenginepowered.com.