BlueHalo, a provider of engineering services and technology to the national security community, has entered into a definitive agreement to acquire Intelligent Automation Inc. BlueHalo is a portfolio company of Arlington Capital Partners.

Based in Rockville, Maryland, IAI provides technology development and services in the fields of artificial intelligence/machine learning, cybersecurity, hypersonics, space, 5G, data analytics, and radio frequency/communications.

“IAI has spent the last three decades building a premier platform focused on bringing innovation to market,” said Jonathan Moneymaker, chief executive officer of BlueHalo. “With nearly one-third of their workforce having PhDs, IAI has an incredibly deep bench of world-class scientists, developers, and engineers, and we at BlueHalo could not be more excited to partner with the IAI management team as we continue to expand our capabilities across areas critical to national security. Encapsulating BlueHalo’s mission areas with IAI’s world-class multi-domain artificial intelligence/machine learning -based technologies will accelerate and enhance BlueHalo’s trajectory while creating a repeatable, sustainable engine of innovation.”

“When we began IAI 34 years ago, we knew we wanted our business to be built around the superior quality of our technical work, outstanding service to our customers, and an impeccable work environment with an excellent professional staff,” Leonard and Jacqueline Haynes, founders of IAI. “We are pleased that BlueHalo will continue to support these pillars in its acquisition of IAI. We are confident that together they will produce an even stronger generation of significant new technology.”

David Wodlinger, partner at Arlington Capital Partners, said “We are proud to partner with the IAI management team to continue building upon the strong foundation that they have established based on deep customer intimacy, highly technical research and development capabilities, and an extensive portfolio of proprietary products.  We believe that IAI is a great fit for BlueHalo as one of our core capabilities as a company is utilizing our resources, whether they be laboratories, facilities, technical reach-back, systems and processes, or intellectual property to enhance and mature promising next-generation solutions into capabilities and products to address some of the most technically demanding challenges facing the national security community.”

Vikram Manikonda, chief executive officer of IAI, shared, “From the outset, the alignment of cultures has been clear between our two businesses.  Collectively we are a culture of inspired engineering seeking to solve some of the nation’s most challenging problems.  Joining forces with BlueHalo provides IAI the opportunity to not only continue its tradition of innovation, but work on a much broader set of problems and challenges.  The entire IAI team and I are incredibly excited about this partnership and for the opportunities for innovation, accelerated growth, and product development that lie ahead of us.”

Henry Albers, a vice president at Arlington Capital Partners, said, “IAI has a storied history of leading groundbreaking research and operationalizing cutting-edge technology for the national security community.  We believe that the company’s highly talented employees will thrive at BlueHalo, enhancing the capabilities and culture of the overall enterprise.”

Raymond James and Associates Inc. acted as the investment banking advisor to IAI in this transaction. Sheppard, Mullin, Richter and Hampton served as legal advisor to BlueHalo and Miles and Stockbridge served as legal advisor to IAI.