Mei Technology Corp. was a $30 million revenue firm in the Federal Government information technology (IT) services industry. Most of its work was for various parts of the Department of Defense. The company’s business was comprised of five major elements: 1) systems engineering services for major C4I systems; 2) software development for significant weapons systems; 3) training systems; 4) physical security systems and 5) management information systems and network systems.
With its detailed knowledge of the Federal Government IT services market and its players, the Outcome Capital bankers developed and implemented a process in which the company was shown to a limited number of pre-qualified strategic buyers that had a strong knowledge of and interest in purchasing the company’s business for all cash. This process resulted in a sale of the business to an emerging consolidator named Matcom International Corp. Matcom had a unique ability to capitalize on a number of the company’s significant client relationships. In addition, Mei Technology Corp. brought significant new capability to Matcom in the software, training and systems engineering areas. With its knowledge of the financing mechanisms being used by the consolidators in this market, the Outcome Capital bankers were also able to bring significant value to this transaction in the final structuring and negotiations.