HIG Capital LLC has reached a deal to buy NCI Inc. (Nasdaq: NCIT), an information technology and professional services company to state and federal government agencies.
Headquartered in Reston, Virginia, NCI provides big data analytics, engineering and logistics, cybersecurity, and IT infrastructure optimization to U.S. defense, intelligence, health and civilian government agencies. The target has more than 100 locations worldwide and focuses on offering cost-effective services to enterprise companies. The deal for NCI is valued at $283 million.
HIG Capital is a middle-market private equity and alternative assets investment firm based in Miami. The firm has more than $21 billion in equity capital under management with additional offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, London and Madrid. HIG Capital targets small and medium-sized businesses with enterprise values between $50 million and $500 million. The firm has previously invested in entertainment content curator Click Jogos, Pegasus Financial Services, and paperboard products manufacturer Caraustar Industries Inc.
As businesses look for analytics to drive better efficiencies and sales, middle-market buyers are continuing to invest in the tech sector. Other deals involving big data and analytics providers include: The Carlyle Group's (Nasdaq: CG) acquisition of consumer data provider Claritas from Nielsen (NYSE: NLSN); Blackstone Group LP (NYSE: BX) and New Mountain Capital’s $570 million investment in retail data provider JDA Software Group Inc.; HGGC’s add-on acquisitions to portfolio company Survey Sampling, a brand tracker; and Summit Partner’s investment in retail data firm Mi9 Retail. Petsky Prunier LLC served as financial adviser to Deluxe on the FMCG Direct deal.
Wells Fargo Securities LLC (NYSE: WFC) and Stifel Nicolaus & Co. Inc. (NYSE: SF) are serving as financial advisers to NCI, while Paul Hastings LLP is acting as legal counsel. Teneo Capital is acting as financial adviser to HIG, while Kirkland & Ellis LLP is serving as legal counsel.