The KeyW Corp. (Nasdaq: KEYW) has reached a deal to buy Sotera Defense Solutions, a cybersecurity service provider for the intelligence community, for approximately $235 million in cash. The transaction announcement comes on the heels of the FBI’s opening a criminal investigation into the release of a large cache of potentially classified information by Wikileaks, which claims to have published thousands of documents revealing cyberespionage capabilities of the CIA.
Sotera is a national security technology company that provides cyber systems, IT applications, counter-terrorism, intelligence analysis, and data analytics services. Sotera, previously known as Global Defense Technology & Systems, went private in 2011 when it was bought by the Ares Management affiliate Ares Private Equity Group. Under the PE firm’s ownership, the target endured struggles stemming from federal budget cuts impacting government contractors, eventually appointing Deborah Alderson as the new CEO in 2013. The target services the Department of Defense, Department of Homeland Security, the intelligence community, and federal law enforcement agencies from its headquarters based in Herndon, Virginia.