Government Services & Technology

Arlington Capital Partners Announces Recapitalization of Compusearch

June 15, 2010 – Arlington Capital Partners is pleased to announce its recapitalization of Compusearch Software Systems, Inc., a Dulles, Virginia based provider of enterprise software and services in the federal acquisition and grants market, in partnership with JMI Equity and Company management.

Compusearch’s industry leading enterprise software and services automate mandated business rules for public sector organizations with authority to spend, grant, or move funds. Compusearch’s PRISM and FedConnect products are installed at more than 80 agencies across the civilian, intelligence, and defense sectors. More than 40,000 federal employees rely on Compusearch’s technologies and services to perform their jobs efficiently.

“The Federal Government has stated its intention to improve transparency in the procurement and contracting process and significantly increase the ranks of the federal acquisition workforce. Over the past 25 years, Compusearch has built the most successful acquisition support software and services offerings in the industry and consequently is uniquely positioned to benefit from these trends. There are numerous potential opportunities across the defense, intelligence and civilian markets that, with our collective support, Compusearch is well positioned to pursue,” said Jeffrey Freed, Co-Founder and Managing Partner of Arlington Capital Partners.

Michael Lustbader, Partner at Arlington Capital, said “We are pleased to partner with Compusearch’s management team and JMI to assist the Company in achieving its next stage of growth. Compusearch’s PRISM suite of products is already regarded as the “best-in-class” offering in the federal procurement software market, allowing federal agencies to operate more effectively and efficiently. We believe that the Company’s competitive offering, combined with our government relationships, will allow us to realize our ambitious growth plans.”

CEO Reid Jackson said, “I look forward to partnering with Arlington Capital and JMI. We believe Arlington’s extensive expertise in government contracting and JMI’s depth of knowledge in commercial software are highly complementary and will help to drive the next phase of the Company’s growth. Together, we will continue to help our government clients achieve real-time visibility, control, and transparency in their acquisitions, grants, and intra-governmental transfers through the effective use of the PRISM suite.”

The entire existing management team and the company’s 175 employees will remain in place along with the name Compusearch and the name of its products: PRISM Acquisitions, PRISM Grants, PRISM Intragovernmental, and FedConnect – brands that federal procurement and grants professionals have come to count on every day to support and manage government acquisitions.

About Compusearch
Founded in 1983, Compusearch is the leading provider of enterprise software and services that automate mandated business rules for public sector organizations with authority to spend, grant, or move funds. Compusearch’s software solutions provide federal, defense and intelligence agencies with the visibility, control, and transparency necessary to improve productivity and performance while also meeting increasingly stringent reporting requirements. Developed specifically for agencies of the U.S. Federal Government, Compusearch solutions are the most widely adopted acquisition and grants management systems with more than 40,000 authorized users representing 80 organizations around the globe.

About Arlington Capital Partners
Arlington Capital Partners (www.arlingtoncap.com) is a Washington, DC-based private equity fund with over $1.3 billion of committed capital focused on middle market buyout investment opportunities in growth industries including: government contracting, aerospace/defense, federal and commercial IT and engineering services, media, education & training, healthcare services and business services & outsourcing. The firm’s professionals have a unique combination of operating and private equity experience that enables 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.

About JMI Equity
JMI Equity is a private equity firm focused on investing in growing software, internet and business services companies at all stages of their lifecycles. Founded in 1992, JMI has invested in 96 leading businesses in its target markets and has approximately $1.3 billion of committed capital under management. JMI provides capital for growth, recapitalizations, acquisitions and buyouts. Representative investments include Blackbaud, DoubleClick, Eloqua and Service-now.com. For more information on JMI, visit http://www.jmiequity.com.

Contact: Jeffrey Freed or Michael Lustbader
Arlington Capital Partners
5425 Wisconsin Avenue, Suite 200
Chevy Chase, MD 20815
(202) 337-7500

SOURCE: Arlington Capital Partners