PAE today announced it has signed a definitive agreement to acquire FCi Federal. FCi, headquartered in Ashburn, Va., provides essential services for immigration and national security including adjudication support, eligibility verification and business process outsourcing services for federal government customers.
The transaction is subject to regulatory approval and is expected to close within 45 business days, after which FCi would become a business unit of PAE. Houlihan Lokey served as FCi's financial advisor in this transaction, and financial terms were not disclosed.
PAE is a portfolio company of Platinum Equity, which acquired the business in 2016. PAE CEO John Heller views the FCi acquisition as a perfect fit with PAE's strategy to expand and deepen its portfolio of services that support the essential missions of the U.S. government, its allied partners and other international organizations.
"FCi is an impressive company with a strong track record for growth driven by talented employees and exceptional customer service," said Heller. "It's a great strategic fit, presenting new opportunities for both of our companies. It's also a strong fit culturally, as I know FCi and PAE share the same core values and commitment to the highest performance standards."
Platinum Equity Partner Louis Samson said the acquisition is an important step in PAE's continued growth.
"The addition of FCi will expand PAE's service offering and bring together a lot of very talented employees," said Samson. "We are delivering on our promise to invest in PAE's long-term strategy and will continue looking for new opportunities to expand organically or through additional acquisitions."
FCi Founder and Chairman Sharon D. Virts said the sale to PAE is the best move for FCi at this stage of the company's evolution.
"Today's announcement is the right path to position FCi Federal for continued phenomenal growth," said Virts. "Since founding FCi in 1991, we have been committed to providing high-quality service that differentiates us from competitors while placing a premium on taking care of our employees. That commitment will remain steadfast as we continue to catapult our competitive positioning for the future."
Following the close, FCi Federal, as a business unit of PAE, will operate from its current headquarters office in Ashburn, Va.
About PAE
PAE is a leading provider of enduring support for the essential missions of the U.S. government, its allied partners and international organizations. With over 60 years of experience, PAE supports the execution of complex and critical missions by providing global logistics and stability operations, technical services and national security solutions to customers around the world. PAE has a workforce of approximately 15,000 people in over 60 countries on all seven continents and is headquartered in Arlington, VA.
About FCi Federal
Operating in more than 40 states and territories, FCi Federal is one of the fastest growing government services firms in the industry providing a wide range of managed professional, administrative and technical services to federal agencies. With 25 years of experience in the federal market, FCi Federal brings depth and breadth of resources and engaged leadership to manage complex government programs, ranging from operating large production centers to providing integrated mission support services for geographically distributed operations. The company's nearly 5,000 employees and subcontractors put their core expertise in program management support, records management, adjudication support, fraud detection and other administrative support services to work in ways that routinely outperform expectations. More information about FCi Federal can be found at www.fcifederal.com.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity (www.platinumequity.com) is a global investment firm with more than $11 billion of assets under management and a portfolio of approximately 30 operating companies that serve customers around the world. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 22 years Platinum Equity has completed more than 185 acquisitions.
