Jenner & Block

Firm Advises ITS, Inc. and Arlington Capital Partners On $100 Million Strategic Acquisition

Jenner & Block Partners Catherine Abbott and Les Lepow advised ITS Services, Inc. and its private equity sponsor, Arlington Capital Partners, on the recent acquisition of Science and Engineering Associates, Inc. by ITS, thereby helping the supplier of information technology services to the federal government expand its already strong presence in that market sector.  In the January 23 Daily Deal, an Arlington Capital source said that ITS paid approximately $100 million for SEA.

The transaction, which closed last week, reportedly combines SEA’s strengths in IT work for the Department of Defense and the Navy in particular with ITS’ strong presence within the IT infrastructure of the Department of Homeland Security, Federal Emergency Management Agency, and the IRS’ enforcement division.

The Firm provided legal advice and services in all aspects of this transaction.  Members of the Firm's Corporate Practice provided general acquisition advice regarding the overall transaction while members of the Government Contracts Practice advised on the government contracts aspects of the deal.  Members of the Firm's Corporate Finance Practice, led by Partner Teri A. Linquist, advised on the senior and mezzanine debt financing, and members of the Firm's Tax Practice, led by Partner Christian E. Kimball, provided guidance on the tax aspects of the transaction.

The Daily Deal estimated that the acquisition will “lift ITS’ yearly revenues to more than $200 million.”

Ms. Abbott has previously represented various private equity investors in a range of transactions and, since joining Jenner & Block’s growing corporate practice in early 2003, was a member of the Firm’s team that worked on GM's split-off of Hughes Electronics (DirecTV) and News Corporation's acquisition of 34% of Hughes as well as several transactions for General Dynamics Corporation.  Mr. Lepow is Co-Chair of the Firm’s Government Contracts practice and has extensive experience handling acquisitions of companies that work directly with government entities.