DC Capital Invests in Valkyrie: Combines with Hill Technical Solutions

ALEXANDRIA, Va., May 17, 2022 /PRNewswire/ -- DC Capital Partners Management, LP ("DC Capital" or "DCCP"), a sector focused private equity firm that invests in middle market companies in the Government and Engineering sectors, today announced it is making a controlling investment in Valkyrie Enterprises, LLC ("Valkyrie" or the "Company").  In conjunction with the acquisition, Hill Technical Solutions, LLC ("HTS"), an existing DC Capital portfolio company, will be merged with Valkyrie. 

Founded in 2007 by Gary Lisota, Valkyrie provides advanced engineering, modeling and simulation, infrastructure sustainment, warfighter readiness, and training solutions in support of U.S. Department of Defense ("DoD") and allied nations' security and diplomatic missions. With a workforce of more than 700 highly technical and experienced engineers, technicians, and industry specialists, the Company is a preeminent end-to-end provider of mission-critical services and solutions in three key domains: (i) Command, Control, Communications, Computers, Combat Systems, and Intelligence ("C5I"), (ii) Maritime Modernization, and (iii) Readiness & Sustainment.  Valkyrie's end-to-end solutions begin with C5I system design and continue through system installation & maintenance, modernization & sustainment, and ongoing training support.

HTS is a premier provider of advanced, full spectrum systems engineering and integration ("SE&I"), technology development, systems architecture analysis and design, and a number of highly specialized solutions, including but not limited to, hypersonic design and testing solutions for U.S. Army, Missile Defense Agency ("MDA"), and other DoD and Intelligence Community customers.  With a long legacy in the Huntsville missile defense community dating back to the Reagan-era Strategic Defense Initiative, the HTS team is a trusted provider to priority agencies working at the forefront of the DoD's critical effort to establish hypersonic technological superiority.

Thomas J. Campbell, Founder and Managing Partner of DC Capital, said, "We are extremely pleased to partner with the Valkyrie team.  Valkyrie has an impressive management team and a proven track record of growth, having grown organically and through four acquisitions in the past five years.  HTS is a strategic fit with Valkyrie in terms of customer base, growth areas such as C5I, and geographic locations.  This combination provides an enhanced range of capabilities and the additional infrastructure to provide greater support to our customers to meet their mission critical requirements and to provide additional opportunities for our employees."

Valkyrie CEO Gary Lisota said, "DC Capital brings a tremendous amount of expertise in the sector which will help further accelerate our growth of services and capabilities to be able to support our customers' current and future needs.  When Valkyrie was founded, our vision was, and continues to be, to rapidly build a customer and employee focused company that provides quality support to our national priorities.  We see this partnership as continuation of this vision."  Valkyrie President David Street added, "DC Capital will provide the additional organic and inorganic investment resources that will allow Valkyrie to continue to grow and add new capabilities needed by our nation."

Current HTS Vice Chairman Brad Hill commented, "We are excited about this next chapter for HTS, and we look forward to working with Valkyrie."  Glenn Turner, current CEO of HTS, added, "This combination will allow HTS and Valkyrie to provide additional technology development to meet the needs of our customers and increased career opportunities for employees of both companies."

Jeff Weber, Partner at DC Capital, said, "As soon as we met the Valkyrie team, it was clear there was an immediate alignment in how we view the market and how to build a business that can drive long-term growth.  We look forward to partnering with Valkyrie to execute the strategic plan we have developed together, which is an evolution of the plan Valkyrie is already executing on today.  With the HTS combination, we will greatly enhance the combined company's capabilities, which will allow us to compete and win more diversified contracts in support of our Country's critical missions."

Chertoff Capital, LLC acted as financial advisor, and Greenberg Traurig, LLP acted as legal advisor to Valkyrie in connection with the transaction.  Arnold & Porter, LLP acted as legal advisor to DC Capital.

Valkyrie is a leading provider of advanced engineering services and technology solutions that support U.S. national security and diplomatic missions globally. Valkyrie provides U.S. Department of Defense ("DoD"), U.S. Federal Government, and allied government customers with mission-critical services and solutions that align with strategic defense initiatives focused on near-peer adversaries and the future "high-end" fight.

To learn more about Valkyrie, please visit: www.valkyrie.com

Hill Technical Solutions is an advanced engineering and technology company that provides comprehensive support for leaders responsible for developing, implementing, and managing complex systems that impact national security. Experienced and driven, our expert teams deliver a suite of services including digital engineering; hardware-in-the-loop ("HWIL") solutions; modeling, simulation, and analysis; and system assessments.

To learn more about HTS, please visit: www.hilltechnicalsolutions.com

DC Capital is a private equity investment firm headquartered in Alexandria, Virginia, focused on making control equity investments in middle market companies that provide differentiated and innovative services and solutions to the Government and Engineering markets. Currently raising its third fund, this represents the third investment for Fund III.  Fund III's earlier investments include Sionyx, LLC (www.Sionyx.com) and uAvionix Corporation (www.uAvionix.com). DCCP has developed a systematic "Strategic Approach" for creating value in portfolio companies built on their underlying three pillars of Domain Expertise, Market Focus, and Strategic Process.

To learn more about DC Capital Partners, please visit: www.dccp.com 

Contact:
Thomas J. Campbell
202-737-5220

SOURCE DC Capital Partners Management, LP