News Article

Fast-growing Dayton firm acquired by Los Angeles tech company
Date: Nov 05, 2019
Author: John Bush
Source: bizjournals ( click here to go to the source)

Featured firm in this article: The Perduco Group Inc of Beavercreek, OH

A data analytics firm based in Beavercreek has been acquired by a California company.

The Perduco Group, a provider of technical solutions to the defense and intelligence communities, was purchased by LinQuest Corp. The Los Angeles-based firm provides space systems technology solutions, also for the defense and intelligence communities. Terms of the acquisition were not disclosed.

Perduco and its leadership team will operate as a business unit within LinQuest, according to a press release.

The acquisition comes as Perduco is experiencing growth in the Dayton region. The company recently moved to a new, larger facility at 2647 Commons Blvd. in Beavercreek. At 30,000 square feet, the building is more than three times larger than the company's former location on Pentagon Boulevard.

Perduco CEO Stephen Chambal said previously the decision to relocate was "driven by our growth." The company went from around 50 employees in 2016 to about 140 employees in 2018, and hired around 30 new workers at its headquarters this year.

Together, Perduco and LinQuest will deliver decision analytics, operations research, artificial intelligence, machine learning and mission planning capabilities. This comprehensive services offering will "strengthen the combined organization's market position as a trusted technology solutions partner for military and intelligence community customers," the press release stated.

The DBJ is reaching out to Perduco officials to see what impact the acquisition will have on its local operations.

"Perduco's corporate values and proven track record of excellence strongly complement LinQuest's core values and commitment to excellence in a customer-first approach," LinQuest CEO Tim Dills said. "This acquisition will create a comprehensive suite of solutions to provide our customers with specialized tools to achieve mission-critical objectives more effectively than ever before."

The acquisition brings LinQuest an expanded contract portfolio with multiple contract paths for its defense customer base. Contract vehicles include the GSA Multiple Award Schedule, the Small Business Innovation Research (SBIR) program and the DoD's Rapid Innovation Fund. Additional active contracts support The Air Force Research Laboratory, the Air Force Materiel Command, the Air Education and Training Command and the intelligence community. Perduco's existing customer base has limited overlap with LinQuest's current footprint and includes "a number of promising opportunities for LinQuest," according to the release.

With the support of its majority investment partners -- Madison Dearborn Partners and CoVant Management -- LinQuest has focused on growth by scaling its research and development capabilities and expanding its customer offerings. The acquisition of Perduco is consistent with this strategy, the company says, and furthers its leadership in space systems technology solutions.

"We're proud to be joining industry-leader LinQuest, a company that shares our commitment to technical innovation and customer experience," Chambal said. "Together, we will deliver a seamless and holistic experience for our military and intelligence community customers designed to more effectively meet their needs on the battlefield and at home."

Baird, a financial services firm with an office at Austin Landing, served as LinQuest's financial advisor with Kirkland & Ellis LLP and Crowell & Moring LLP serving as legal advisors. Jones Day served as legal advisor to Perduco. As part of the transaction, Bank of America Merrill Lynch is providing an expanded credit facility to support LinQuest's continued growth.