Combined Company Positioned to Address Mission-Critical Needs of Federal Health, Defense, Civilian and Commercial Customers
FALLS CHURCH, Va., April 2, 2012 /PRNewswire-USNewswire/ -- Acentia today announced that it has acquired 2020 Company, LLC, a Federal IT solutions provider at the forefront of transformational health IT and other projects across the public sector. The newly combined company, which will be known as Acentia, employs more than 1,200 employees. 2020's Robert McCord will immediately assume the position of President and Chief Operating Officer of Acentia. Todd Stottlemyer will continue as CEO.
Acentia is a premier provider of technology and management solutions that help customers across the Federal Government, health and commercial markets meet their mission-critical requirements on programs of national significance. Snow Phipps Group LLC, a New York-based private equity firm is the principal investor in Acentia. Snow Phipps acquired a majority stake in a predecessor firm in 2009 as part of a strategy to build a leading company in the government technology services space.
2020, based in Falls Church, Va., is a premier professional services firm that delivers business and technology solutions through consulting and outsourcing services to the government, in the areas of health, education, and science. For the past 11 years, 2020 has specialized in custom system maintenance, systems development and integration, technology infrastructure support, and a variety of business services, including program/project management, business process support, and mission support services. 2020 is a CMMI Level 3 and an ISO 9001:2008 organization that has invested heavily in creating a process-driven, success-oriented organization focused on achieving its customers' goals. Customers include: the Centers for Medicare and Medicaid Services (CMS); the Centers for Disease Control and Prevention (CDC); the Department of Education; and the National Oceanic and Atmospheric Administration (NOAA).
"The addition of 2020 extends Acentia's reach with the services and expertise to pursue and execute more and even larger opportunities on programs of national significance," said Stottlemyer. "This merger aligns with the goals we stated publicly last year when we re-branded the company, specifically, that we would look to grow Acentia in order to provide expanded capabilities to our customers. It represents a significant win for both companies' employees and customers."
"As owners of the company, we spent a great deal of time and energy looking at strategic options for continued growth that would preserve the vision and values upon which 2020 was founded," said 2020 CEO Paresh Ghelani. "After engaging in a very diligent process we chose to merge with Acentia, primarily because we believe in its leadership, exemplified by CEO Todd Stottlemyer. He, along with his management team, shares our cultural philosophy of building an employee-centric organization that focuses on the customer."
"Since founding 2020 11 years ago, Haresh Bhungalia and Paresh Ghelani have been incredible stewards of the company and their employees," said Stottlemyer. "I am honored that they have entrusted Acentia with the responsibility of carrying on that stewardship as we build the next great mid-tier leader within our industry."
The combined company creates immediate and significant benefits to customers, including:
- Expanded Capabilities – Our combined capabilities, including Modernization, Cloud Computing, Strategy and Enterprise Architecture, Application Development, Operations and Maintenance, Data Analytics, and Mobility, demonstrate the breadth and depth of Acentia's experience and expertise.
- Proven Processes and Execution – A shared commitment to repeatable, performance-driven processes, adherence to industry best practices, and unquestioned integrity as demonstrated through "the Acentia Way" of program management and execution. We are now one of only a few companies certified as both ISO 20000 and CMMI Level 3.
- Enhanced Resources and Reach – An expanded talent pool of more than 1,200 employees and extended national footprint includes new offices in Atlanta and Baltimore.
- Seasoned Management Team – A tested management team that includes several 2020 executives—Robert McCord, President and COO of Acentia (formerly President and COO at 2020), and Mike Raymond, Chief Strategy Officer of Acentia (formerly Chief Strategy Officer at 2020)—who have broad and deep industry expertise.
"Modernization of health and other government IT systems is one of our nation's most mission-critical priorities, and today's announcement aligns two companies positioned at the forefront of some of the most innovative, transformational technology initiatives on behalf of Government agencies and the citizens they serve," said McCord, President and COO of Acentia. "With a shared mission, purpose, and culture, we believe that our customers will see tangible and immediate advantages."
"Merging 2020's capabilities, relationships, and management expertise with Acentia is a very positive step forward," said Leif Soderberg, Chairman of the Board of Acentia and an Operating Partner with Snow Phipps. "The combined business is well positioned to grow but also retain the flexibility and responsiveness that have contributed to their success in the past."
In addition to Snow Phipps' investment, the senior credit bank financing for the 2020 acquisition and a line of credit for future working capital needs are being provided by RBS Citizens (Lead Arranger), Citizens Bank (Administrative Agent), Bank of America, N.A., M&T Bank, and SunTrust Bank.
KippsDesanto & Co. acted as exclusive financial advisor to 2020 in this transaction.
Acentia is a premier employer and provider of technology and management solutions that help customers meet their mission-critical requirements on programs of national significance. Our professionals build trusted relationships with our customers by tackling their most difficult challenges while consistently demonstrating value to customers across the Federal Government, health and commercial markets. To learn more about our company and broad range of services, visit www.acentia.com.
About Snow Phipps Group, LLC
Snow Phipps is a New York-based private equity firm founded by Ian Snow and Ogden Phipps that seeks to acquire middle market businesses in attractive industries by leveraging the expertise of exclusive operating partners who are seasoned industry executives. To learn more about SnowPhipps, visit www.snowphipps.com.