Senior Management Led | Transactions

Has Sold Its Business to NCS Pearson

Exclusive Financial Advisor to Kajax Engineering

Kajax Engineering, Inc. (“KEI”) was a privately held company that had approximately $50 million in annual revenues. The Company was a professional services firm that focused on providing technology services to a diversified mix of departments and agencies of the Federal Government. The Company’s services assisted their clients in the building, operation and use of their information technology infrastructure. KEI’s business focused on four principal service areas: systems integration, IT outsourcing services, training, and information management.

KEI was founded in 1989 and graduated from the 8(a) program in 1995. Since graduating from the program, the Company’s revenues had grown over 82%. The Company employed over 600 employees positioned across the country. Despite having successfully transitioned the business from the minority set-aside program to the unrestricted competitive marketplace and nearly doubling the business during this transition, the business owner was increasingly seeing his company’s types of services being consolidated by the government clients into much larger contracts. This contract consolidation led the business owner to seek a larger “home” for his customers and employees.

Outcome Capital’s investment bankers designed and implemented a process under which several types of buyers were contacted:

1. government professional services firms;
2. commercial IT services firms; and
3. larger diversified firms with distinct technology-oriented business platforms.

Our transaction team was able to engage a small number of strategic buyers in serious discussions with the Company.

The process led to the Company agreeing to be purchased by a subsidiary of a large international diversified services company, Pearson Plc. of the United Kingdom, in an all cash transaction. NCS Pearson, the U.S. subsidiary of Pearson Plc. that actually purchased the business, is a market leader in education, testing, assessment, complex data management and government solutions. Outcome Capital Securities’ detailed knowledge and experience in the Government professional services market made it possible for Pearson Plc. and its subsidiary NCS Pearson to complete the company’s acquisition of KEI, Pearson’s first acquisition in the government solutions industry.