Arlington Capital Partners has created Polaris Alpha from a merger involving: Eoir Technologies, a cloud computing company; Intelligent Software Solutions, a big data analytics firm, and cybersecurity software developer Proteus Technologies. The newly formed company anticipates nearly $250 million in revenue for 2017.
The trend for middle-market cybersecurity is imminent now more than ever. From high-profile hacks and data leaks to network outtages, cybersecurity firms have made for attractive purchases in technology M&A. 2016 deals within the sector include: Accenture’s purchasing Redcore; Vista’s agreement to buy compliance software provider Regulatory DataCorp Inc.; TPG’s $4.2 billion dollar deal for a majority stake in Intel Corp’s computer security unit; Thoma Bravo LLC’s buying Bomgar and healthcare IT security company Imprivata (NYSE: IMPR); ASRC Federal acquiring Vistronix Intelligence & Technology Solutions from Enlightenment Capital; FireEye Inc. (Nasdaq: FEYE) purchase of iSight Partners; Avast Software's $1.3 billion deal to expand its security software services with AVG Technologies NV (NYSE: AVG); and Honeywell International Inc.'s (NYSE: HON) selling Honeywell Technology Solutions Inc. to KBR Inc. (NYSE: KBR).
Polaris brings together complementary software and services to establish a tech company that specializes in analytics, domain expertise and cybersecurity. Polaris serves the Department of Defense and intelligence industry with clients such as: U.S. Department of Homeland Security, Department of State, and London’s Metropolitan Police Service. The new company has staff both domestically and internationally, with major offices in Colorado Springs, Colorado and Fredericksburg, Virginia.
The formation of Polaris from Eoir, Intelligent Software and Proteus “has been years in the making,” according to Jay Jesse, president of the combined firm.
Arlington Capital, a Washington, D.C.-based middle market private equity firm, bought Eoir Technolgies in June 2016 with a goal “to build a national security platform.” The investment firm manages approximately $1.5 billion of committed capital in three funds. Arlington Capital focuses its investments on middle-market deals covering the aerospace and defense, government services and technology, healthcare, business services and software industries. The PE firm purchased the defense and security business of iRobot Corp. (Nasdaq: IRBT), renamed to Endeavor Robotics, in February. Arlington Capital sold aerospace engine maker MB Aerospace to the Blackstone Group LP (NYSE: BX) in Oct. 2015.