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Arlington Capital Announces Octo’s Strategic Combination with Sevatec

Combination establishes the premier pure-play IT Modernization provider to the Federal Government.

Octo – Sevatec Announcement Video

December 15, 2020, Washington, D.C. – Octo, a premier provider of emerging technology and IT Modernization services for the Federal Government, announced today its combination with privately held, Fairfax-based Sevatec, a leading provider of mission-critical software development solutions and digital modernization services to the Federal Government. The combination of Octo and Sevatec creates a highly agile partner to government customers that can address complex technology challenges with innovation, high-touch service, and substantial technical and operational resources.

The combined organization has grown every year since inception and today generates nearly $300 million of revenue and employs approximately 1,100 skilled employees dedicated to solving technical challenges for government customers across the Defense, Intelligence, National Security, Federal Health, and Civilian marketplaces.

Michael Lustbader, a Managing Partner at Arlington Capital, said, “Individually these two companies are extremely well-managed and consistently deliver for their customers, while also caring for their employees. You see that reflected in their continuous growth through the years. We have admired Sevatec for some time, and we felt this would be a fantastic combination. Arlington is really excited to see what can be accomplished together.”

Founded in 2003, Sevatec drives advancements in technology, open-source tooling, and commercial best practices in human-centered design, Agile delivery, DevSecOps, end-to-end security, cloud service integration, data engineering, and automation. In addition to holding several highly strategic contract vehicles, Sevatec has been awarded almost $400 million of recent prime contracts wins.

Ben Ramundo, a Vice President at Arlington Capital, said, “The combination of Octo and Sevatec will yield an organization that is purpose-built to address complicated modernization requirements by leveraging the innovative spirit that fueled each company’s individual momentum. When capabilities, end markets and culture align in such a complementary fashion, the benefits reaped by federal customers and employees are limitless.”

Sevatec’s core leadership team will play key roles in the combined business. As a part of the transaction, Sonny Kakar will serve as Vice Chair of the Board and Head of Strategy. Tim May, Sevatec’s Chief Growth Officer, will serve as the Chief Growth Officer for the combined organization. Furthermore, Chuck Schefer, EVP at Sevatec, will serve as EVP managing programs in the GSA, DHS, and USPTO markets. Mehul Sanghani will continue to serve as the combined firm’s CEO.

Sonny Kakar, Founder and CEO of Sevatec, said “I have known Mehul for years and have admired deeply what Octo has been able to achieve. Octo was the only company we considered for such a transaction. While the industrial logic of the merger resonated tremendously with us both, it also became evident that it would create significant growth opportunities for our employees and allow the combined business to compete at scale and solve some of the most pressing challenges facing our customers.”

“With this transaction, I firmly believe we have created a unique, market-shaping organization that is unmatched in terms of its collective ability to be a pure-play modernization and technology solutions provider to the Federal Government and its wide-ranging missions,” said Mehul Sanghani, Octo’s Founder and CEO.

About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC-based private equity firm that is currently investing out of Arlington Capital Partners V, L.P., a $1.7 billion fund. The firm has managed approximately $4.0 billion of committed capital via five investment funds. Arlington is focused on middle market investment opportunities in growth industries including government services and technology, aerospace & defense, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their Company’s position as leading competitors in their field. www.arlingtoncap.com.

About Octo
Octo challenges the status quo, empowering federal agencies to leap IT hurdles by using emerging technologies to create transformative solutions that enable rapid modernization, enhance citizen engagement, and maximize human impact. We continually explore ways to transform IT, producing results vital to national security, intelligence, health care, and more.

Headquartered in Reston, Virginia, Octo is a technology firm dedicated to solving the Federal Government’s most complex challenges with Artificial Intelligence, Blockchain, Agile DevSecOps, Cloud Engineering, Open Source, Cybersecurity, and Data Science solutions. Octo enables the government to modernize faster and meet the needs of rapidly changing missions with agility. Our approach is collaborative, and our outcomes are superior. Visit octoconsulting.com.

About Sevatec
Sevatec builds the software that powers exceptional government missions. Our Digital Software Supply Chain, ShiftUp TM, which brings together commercial best practices and advanced technology tools in Agile delivery, human-centered design, DevSecOps, Cloud, Security, and Data, has helped us modernize several hundred applications across the federal government. Founded in 2003 on the concept of “Seva,” meaning “to Serve a Greater Purpose,” we serve the missions of Homeland and Law Enforcement agencies, Department of Defense, General Services Administration, Department of Transportation, and multiple civilian departments and agencies.

Contact:
Michael Lustbader and Ben Ramundo
Arlington Capital Partners
5425 Wisconsin Avenue, Suite 200
Chevy Chase, MD 20815
202-337-7500
SOURCE: Arlington Capital Partners