Aronson Capital Partners Advises GSM Consulting, Inc. on its Sale to Preferred Systems Solutions

on Tuesday, 3 November 2015, Posted in Experience

Aronson Capital Partners is pleased to announce the acquisition of GSM Consulting, Inc. (“GSM”) by Preferred Systems Solutions, Inc. (“PSS”), a portfolio company of CM Equity Partners. ACP served as the exclusive financial advisor to GSM in this transaction.

Founded in 2008, GSM is a leading edge provider of high-end software engineering, cyber security, and mobile solutions to the Intelligence Community.  Donald McKinley, President and CEO of GSM Consulting, will transition to Vice President of the National Security Group (“NSG”) Division of PSS. Mr. McKinley brings more than 20 years of systems engineering, operations oversight, and business development expertise to PSS. “We are excited to join forces with such a respected and seasoned team,” he said.

“I am proud of our long term partnership with the people dedicated to safeguarding our national security in their critical mission to defend our country and preserve our democracy at home and abroad. The acquisition of GSM, with a successful track record of outstanding customer support within the Intelligence Community, expands our commitment to those men and women,” said Scott Goss, CEO of PSS.

 “The strategy of the PSS National Security Group is to build a company to solve the challenging problems faced by the Intelligence Community,” said Fred Funk, Senior Vice President, NSG. “GSM fits perfectly into that strategy given its technical expertise in software engineering, data analytics, and mobile development.”

 We believe this transaction illustrates several key trends in the government technology M&A market:

  • Favorable market fundamentals for companies focused on areas of federal spending priority, including cyber security, data analytics, and mobile development
  • Acquisition targets focused on the Intelligence Community and National Security markets continue to garner significant buyer interest due to the inherent barriers to entry associated with those markets
  • Continued M&A interest amongst private equity-backed strategic buyers pursuing pure-play, solution driven targets to add scale and compete in the government services market

Aronson Capital Partners is a leading M&A advisor to middle-market defense and government technology solutions providers. For a comprehensive update of industry M&A activity, please read our quarterly newsletter.