GovernmentCIO’s acquisition of Salient CRGT from private equity firms Bridge Growth Partners and Frontenac last summer resulted in a combined company that offers information technology products and digital services used by federal government agencies. GovernmentCIO specializes in technology and digital solutions for the federal health IT services market. Salient’s specialties include analytics, cloud, software development, cybersecurity, and infrastructure technology used by U.S. national security, federal civilian and federal health agencies.
Building Scale in the Mid-Market
GovernmentCIO, which was renamed GovCIO when the acquisition was completed, is backed by Welsh, Carson, Anderson & Stowe (WCAS). WCAS, a private equity firm that focuses on technology and healthcare, has backed it since 2020. Founded more than a decade ago, GovCIO’s contracts with federal health agencies have included the Department of Veterans Affairs, Department of Health and Human Services, Internal Revenue Service and the Department of Homeland Security.
Salient CRGT was formed through the merger of CRGT and Salient Federal Solutions in September 2015.
As a combined company, GovCIO has more than 2,200 employees and in 2021 had revenue of approximately $700 million. Jim Brabston, GovCIO’s CEO heads the combined company, and Tom Ferrando, Salient CRGT’s CEO, joined the board of directors.
“The addition of SCRGT to the GovernmentCIO platform marks an exciting new chapter for the company and aligns with Welsh Carson’s goal to rapidly grow the company through a focused acquisition strategy,” Mike Donovan, head of technology and general partner at WCAS, said in a statement when the deal was announced.
“Over the past few years, we have attracted and retained some of the best talent in the industry and have also successfully executed multiple organic growth initiatives and transformative acquisitions,” Ferrando said in a statement.
For more Deals of the Year coverage, see Mergers and Acquisitions Reveals the 2022 Middle-Market Deals of the Year.