Federal contractor PAE announced today that it has signed a definitive agreement to acquire Loudoun-based FCi Federal.
FCi Federal, founded in Leesburg by Sharon D. Virts and now headquartered in Ashburn, provides essential services for immigration and national security including adjudication support, eligibility verification and business process outsourcing services for federal government customers. Virts started the company in 1991 out of her mother’s basement as a 29-year-old. FCi Federal now has 5,000 employees and subcontractors with a projected revenue of more than $200 million this year.
The transaction is subject to regulatory approval and is expected to close within 45 business days, after which FCi would become a business unit of PAE. Terms of the deal were not disclosed.
Virts said the sale to PAE is the best move for FCi at this stage of the company’s evolution.
“Today’s announcement is the right path to position FCi Federal for continued phenomenal growth,” Virts said. “Since founding FCi in 1991, we have been committed to providing high-quality service that differentiates us from competitors while placing a premium on taking care of our employees. That commitment will remain steadfast as we continue to catapult our competitive positioning for the future.”
PAE is a portfolio company of Platinum Equity, which acquired the business in 2016. PAE CEO John Heller said he views the FCi acquisition as a perfect fit with PAE’s strategy to expand and deepen its portfolio of services that support the essential missions of the U.S. government, its allied partners and other international organizations.
“FCi is an impressive company with a strong track record for growth driven by talented employees and exceptional customer service,” Heller said. “It’s a great strategic fit, presenting new opportunities for both of our companies. It’s also a strong fit culturally, as I know FCi and PAE share the same core values and commitment to the highest performance standards.”
Platinum Equity Partner Louis Samson said the acquisition is an important step in PAE’s continued growth.
“The addition of FCi will expand PAE’s service offering and bring together a lot of very talented employees,” Samson stated. “We are delivering on our promise to invest in PAE’s long-term strategy and will continue looking for new opportunities to expand organically or through additional acquisitions.”
FCi Federal, as a business unit of PAE, will continue to operate from its current headquarters office at University Center in Ashburn.
FCi Federal operates in more than 40 states and territories, providing a wide range of managed professional, administrative and technical services to federal agencies. The company has nearly 5,000 employees and subcontractors, focused on program management support, records management, adjudication support, fraud detection and other administrative support services.
Platinum Equity, founded in 1995, is a global investment firm with more than $11 billion of assets under management and a portfolio of approximately 30 operating companies around the world. It specializes in mergers, acquisitions and operations, acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 22 years Platinum Equity has completed more than 185 acquisitions.