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Selected Case Studies

Chandler/May


Arlington has been one of the earliest financial investors in Unmanned Aerial Systems (“UAS”). Continuing its successful track record of investing in transformational technologies that reduce costs and improve effectiveness for the military, Arlington identified UAS as a technology that would reduce costs significantly versus manned flight, save lives and improve mission effectiveness.

Based on our investment thesis, industry focus on defense and related network of contacts, Arlington met with Chandler/May, (“CMI”), a Huntsville, AL based manufacturer of ground control stations for UAS. In December 2005, Arlington invested behind the company’s two founders, Jay Chandler and Jesse May, through a leveraged recapitalization which provided immediate cash proceeds to the founders, gave them a sizeable ownership in the recapitalized company, and provided additional capital for the business to grow organically and through acquisitions.

Through significant investment in people and capital in partnership with the company’s founders, Chandler/May became the de-facto standard for the U.S. Army’s UAS ground control stations. The company produced nearly every tactical UAS ground control station fielded for the U.S. Army during Arlington’s ownership.

To supplement the company’s core business of designing and manufacturing UAS ground control stations, Arlington encouraged investment in mission planning software and aerial vehicle technology that would differentiate the company even further from its competitors. Arlington sourced and funded the proprietary and strategic acquisition of AME Unmanned Air Systems in 2009. The combination of ground control stations and proprietary drones enabled the combined company to offer fully-integrated turnkey UAS solutions to its customers.

CMI Case Study

As part of its value add, Arlington recruited Lieutenant General Daniel J. Petrosky and Tony Syme to join the board of Chandler/May. In addition to commanding the 8th U.S. Army in Korea and serving as chief of staff for the U.S. European Command, General Petrosky has been an advisor to U.S. Army Aviation and Missile Research and a thought leader in the U.S. Army’s use of UAS and has been an invaluable board member to the company. Tony Syme, a highly successful defense executive previously backed by Arlington in the field of flight aviation software, provided invaluable product and customer strategic advice.

Arlington and management’s efforts to build Chandler/May into a strategically differentiated and mission critical company were substantiated in 2012 when Lockheed Martin, the world’s largest defense contractor, purchased the company at a significant premium to solidify their UAS product portfolio and strategic positioning. The business is now known as Lockheed Martin Unmanned Integrated Systems, Inc.

Novetta Solutions


As the national security mission evolved in the decade following 9/11, Arlington recognized that one of the largest challenges facing the intelligence community was a data analytics problem. The United States needed to refine its ability to filter, classify, analyze and act upon the oceans of data that were being collected by national intelligence agencies, the DoD, DHS, FBI and local law enforcement.

To satisfy that need, Arlington set out to build a cohesive national security solutions provider that had the capability to process and analyze massive quantities of structured and unstructured data across multiple domains to develop actionable intelligence for its customers – to find the “needle in the haystack”.

Unique analytical capabilities existed independently in technology circles and within certa
in classified enclaves. Arlington sought to bring these world class capabilities together in an organization that would have the scale to invest further in the technologies and deliver these solutions broadly across the entire national security community.Novetta Case Study-1

 

Novetta Case Study

To scale the corporate infrastructure and bolster the team of technology leadership already on board, Arlington recruited an experienced government technology executive, Peter LaMontagne, to lead the company as CEO. Furthermore, Arlington made key additions to the Board and the senior executive suite, all of whom were critical to fueling Novetta’s tremendous growth.

Through a combination of organic and inorganic growth during Arlington’s ownership, Novetta has achieved revenue growth of over 300%.

Together, Arlington and Novetta identified unique national security assets that complemented Novetta’s core capabilities and made a number of acquisitions to create industry leading capabilities in Data Analytics, Cyber & Discovery Analytics, Open Source Analytics and Multi-Int Analytics that enable customers to make data driven decisions more quickly and gain strategic insights.

As the threats facing governments and the commercial world (cyber security, fraud, terrorism, etc.) began to converge, Novetta’s expertise and solutions in these areas were increasingly in demand from large commercial customers. Arlington helped Novetta make a large investment in a first-class software development team and product sales force to advance Novetta’s software products and drive sales in the commercial sector through further technology investment and innovation.

Today, Novetta is one of the premier data and cyber analytics companies in the world and helps its clients produce clarity from complexity as they sift through massive data sets from which actionable intelligence could previously not be derived. By mastering scale and speed, Novetta’s advanced analytics software and solutions deliver the actionable insights needed to help their customers detect threats, protect high value networks, and improve the bottom line.

Novetta has rich intellectual property and licensable software in each core capability enhancing customer intimacy, connectivity and driving strong margins and a robust pipeline of ‘next gen’ technologies under development. Through a combination of organic and inorganic growth during Arlington’s ownership, Novetta has achieved revenue growth of over 300%.

The company currently has over 10 strategically located offices and 650 employees serving both federal and commercial customers.