Government Services & Technology

Tyto Athene, an Arlington Capital Partners Portfolio Company, Bolsters Space System Capabilities Through the Acquisition of Microtel, LLC

HERNDON, VA, April 8, 2024 – Tyto Athene, LLC (“Tyto”), a federal systems integrator of mission-focused digital transformation solutions, has completed its acquisition of Microtel LLC (“Microtel” or the “Company”), a software development and systems engineering firm deeply embedded in long-term, space missions for NASA and international space programs. Tyto is a portfolio company of Arlington Capital Partners (“Arlington”), a Washington, D.C.-area private investment firm specializing in government regulated industries.

Tyto is an innovator in Space Domain Awareness and Combat Power with expertise in Space Threat Intelligence Analysis and Modeling and Simulation. The acquisition of Microtel further strengthens Tyto’s longstanding customer relationships and capabilities across the space domain, as the Company’s key software development specialties include mission-critical flight software to control robotic spacecraft, rovers, and other onboard flight applications for command, telemetry, and science data processing.

Michael Lustbader, a Managing Partner at Arlington, said, “For nearly three decades, Microtel has been a proven leader in software development for space programs and this expertise complements our existing space command work. This acquisition underscores Tyto’s commitment to delivering exceptional solutions and expanding its presence in critical markets, including its relationship with NASA. We look forward to supporting Dennis as he drives the integration and advances Tyto’s growth.”

“I am very pleased to welcome Microtel to the Tyto family,” said Dennis Kelly, CEO of Tyto. “Microtel’s impressive team of professionals are hands-on technologists with deep expertise in software development and AI/ML technologies. We look forward to leveraging our combined capabilities to further our growth and bring new innovations to our customer’s mission.”

“Our shared vision of innovation will allow us to explore other mission areas we can support” said Jerry Hengemihle, CEO of Microtel. “We are excited for our future with Tyto, and we look forward to delivering next-generation solutions that expand our support to NASA and other federal agencies.”


About Tyto Athene

Headquartered in Herndon, Virginia, Tyto Athene harnesses the power of technology to provide solutions that shape the future. With over 60 years of experience providing mission-focused digital transformation and nine offices across the U.S., our team of experts connects people with technologies to seamlessly integrate and modernize enterprise-level operations that increase mission resiliency, capability, and flexibility for U.S. defense, national security, intelligence, space, and public safety agencies around the globe. Tyto’s deep understanding of the customer’s mission brings proven results. For more information, visit or Tyto Athene on LinkedIn.

About Arlington Capital Partners

Arlington Capital Partners is a Washington, D.C.-area private investment firm specializing in government regulated industries. The firm partners with founders and management teams to build strategically important businesses in the government services and technology, aerospace and defense, and healthcare sectors. Since its inception in 1999, Arlington has invested in over 150 companies and is currently investing out of its $3.8 billion Fund VI. For more information, visit Arlington’s website at and follow Arlington on LinkedIn.


Kelsey Clute, Michael Lustbader & Gordon Auduong

Arlington Capital Partners

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