An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Arlington Capital Partners Agrees to Sell Octo to IBM
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary
Arlington Capital has announced the sale of Octo, a digital modernization solutions provider, to IBM. The acquisition aims to enhance Octo's capabilities in serving federal government clients by leveraging IBM's global reach. Since 2019, Arlington Capital has supported Octo's growth through strategic acquisitions and increased R&D investments. The transaction is expected to be finalized by the year's end, pending regulatory approvals. Key figures include Octo's nearly 1,500 employees and its focus on technology solutions for national security and public healthcare.
Positive
Octo's strong growth through four acquisitions since 2019, expanding its healthcare footprint.
Increased R&D and capital spending resulting in new proprietary solutions and a flagship development center.
Potential for accelerated client service and growth through IBM's global reach and resources.
Negative
None.
WASHINGTON--(BUSINESS WIRE)--
Arlington Capital Partners (“Arlington Capital”), a Washington, DC-based private equity firm, today announced it has agreed to sell Octo (the “Company”) to IBM (NYSE: IBM). Octo, headquartered in Reston, VA, is a pure-play digital modernization solutions provider to the federal government.
Michael Lustbader, a Managing Partner at Arlington Capital, said “Since our partnership with Octo began in early 2019, the Company has consummated four highly complementary acquisitions, expanding the Company’s healthcare footprint, while also doubling down on its strong positioning with forward-leaning modernization customers within the national security and civilian customer communities. The partnership with the Octo management team and their tireless efforts enabled us to build a great business focused on the infusion of modern technology into government applications and solidified the Company as an attractive workplace for technologists.”
Mehul Sanghani, Founder & CEO of Octo, said “Octo was founded in 2006 with the singular belief and vision of creating a company that was laser-focused on transforming government missions with technology and building the type of culture that attracted high-end technologists who were passionate about that same vision. Our partnership with Arlington Capital has afforded us the opportunity to scale that vision at an unsurpassed pace. We have created an organization focused on digital transformation with modernization missions at scale ranging from public healthcare, to national security, to intelligence & defense. Octo’s combination with IBM affords our clients and our nearly 1,500 employees the unique opportunity to expand and accelerate that vision – with the global reach of one of the world’s pre-eminent brands and largest technology firms.”
Ben Ramundo, Vice President at Arlington Capital, said “Over the last three years, Octo significantly increased its R&D and capital spending, leading to the development of new proprietary solutions, integration of code from acquired entities, and the establishment of its flagship oLabs development center. These endeavors paved the way for Octo to achieve strong annual organic growth and have positioned the Company for further success. We can think of no better steward than IBM to build upon those achievements.”
The transaction is expected to close by the end of the calendar year, subject to customary closing conditions and regulatory approvals.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC-based private equity firm with approximately $7 billion of assets under management via six investment funds. Arlington is focused on middle market investment opportunities in growth industries including government services and technology, aerospace & defense, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their Company’s position as leading competitors in their field.
Octo is a technology firm dedicated to solving the Federal Government’s most complex challenges, enabling agencies to jump the technology curve. We don’t just modernize. We create lasting change through best practices that help agencies implement and integrate at-scale next-generation technology and innovation. With a mission and service first mentality, we provide Agile, DevSecOps, Artificial Intelligence, Cybersecurity, Blockchain, Cloud, Open Source, and Data Science solutions, collaborating to solve customers’ pressing problems. Headquartered in Reston, Virginia, Octo delivers proven technology vital to the intelligence community and health care, defense, national security, and civilian agencies that directly impact our nation.
