Guidehouse to Acquire Dovel Technologies

Rhea-AI Summary

Macquarie Capital has signed a definitive agreement to sell Dovel Technologies to Guidehouse, a Veritas Capital portfolio company. Dovel, which Macquarie majority-owned since 2019, specializes in health IT, life sciences, public safety, and grants management. The acquisition aims to enhance Guidehouse's service offerings with Dovel's expertise in advanced data analytics and technology. The deal is expected to close in Q4 2021, pending regulatory approvals. Macquarie acted as a financial advisor for the transaction.

Positive

• Dovel's acquisition will enhance Guidehouse's capabilities in health IT and advanced analytics.
• Dovel has a strong growth trajectory, indicating successful integration potential.

Negative

• Pending regulatory approvals may delay the transaction.
• Potential integration challenges between Dovel and Guidehouse could arise.

NEW YORK--(BUSINESS WIRE)-- Macquarie Capital, the advisory, capital markets and principal investment arm of Macquarie Group, today announced that it has reached a definitive agreement to sell Dovel Technologies (“Dovel”) to Guidehouse, a portfolio company of Veritas Capital. Dovel is a leading expert to federal agencies that blends deep domain expertise and advanced technologies in the health IT, life sciences, public safety and grants management markets.

Macquarie acquired a majority stake in Dovel in 2019 and established a plan to further grow and scale the company. Under Macquarie Capital’s ownership, Dovel continued its rapid organic growth, acquired Ace Info Solutions, broadened its executive management team and workforce and has been cited as a top growth company in numerous rankings as well as a top workplace. The transaction is subject to regulatory approvals and customary closing conditions and is expected to occur in the fourth quarter of 2021.

“Dovel is an established leader in its core focus areas of health IT, life sciences, public safety and grants management and we are pleased to have found an outstanding partner in Guidehouse that is a strategic fit and shares our commitment to Dovel’s mission,” said Larry Handen, Senior Managing Director in Principal Finance, the principal investing arm of Macquarie Capital’s Advisory and Capital Solutions division. “We’re thrilled that Dovel extended its tremendous growth trajectory while working with Macquarie Capital and that it is well positioned for continued success,” added Jared Doskow, Managing Director at Principal Finance.

Dovel will add deep subject matter expertise in advanced data analytics, artificial intelligence and machine learning, digital modernization and technology infrastructure optimization to Guidehouse’s complementary service offerings, particularly in the Health, National Security and Energy and Sustainability & Infrastructure sectors.

“The acquisition of Dovel is the next strategic step in our journey to create the next generation global consultancy,” said Scott McIntyre, Chief Executive Officer of Guidehouse. “Dovel is an exceptionally strong solutions provider with significant expertise in technology and advanced analytics, addressing some of the most complex challenges their clients face in the health, human services and public safety markets.”

Damon Griggs, Chief Executive Officer of Dovel, said, “We are excited by the opportunity to join the Guidehouse platform given our complementary capabilities and strategically correlated missions to improve, protect, and save lives. Together, Dovel and Guidehouse will create a powerful, technology-driven organization, characterized by deep industry expertise and leading technical know-how. Our companies are aligned with similar cultures and strong core values.”

In addition to its ownership interest, Macquarie Capital acted as financial advisor to Dovel. Houlihan Lokey also acted as financial advisor.

About Macquarie Capital

Macquarie Capital is the advisory, capital markets and principal investment arm of Macquarie Group. Our capabilities encompass corporate advisory and a full spectrum of capital solutions, including capital raising services from equity, debt and private capital markets and principal investments from Macquarie’s own balance sheet. These offerings are reinforced through our deep sector expertise in: aerospace, defense and government services, consumer, gaming and leisure, financial institutions, healthcare, industrials, infrastructure and energy, real estate, resources, services, technology and telecommunications and media sectors. Macquarie Capital Principal Finance, the principal investing arm of Macquarie Capital Advisory and Capital Solutions, provides flexible primary financing and secondary market investing solutions for corporate and commercial real estate clients across North America, Europe and Australasia. For further information visit macquarie.com/au/en/about/company/macquarie-capital/advisory-and-capital-solutions.html.

About Dovel Technologies

Dovel Technologies (“Dovel”) is a trusted government partner that blends deep domain expertise with advanced technologies to help our customers solve complex problems that improve, protect, and save lives. As a rapidly growing company, the company combines entrepreneurial spirit, customer focus, and an outcomes-based approach to support agency missions in health IT, life sciences, public safety, and grants management. To learn more, visit www.doveltech.com.

About Guidehouse

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. The company helps clients address their complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, Guidehouse creates scalable, innovative solutions that prepare our clients for future growth and success. The company has more than 10,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

About Veritas Capital

Veritas is a longstanding technology investor with a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the healthcare, national security, software, education, aerospace & defense, government services, communications, and energy industries. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means.

Leveraging technology to make a positive impact across vitally important areas, such as healthcare, education, and national security, is core to Veritas. We are proud stewards of national assets, helping to improve the quality of healthcare while reducing cost, advance our educational system, and protect our nation and allies. For more information, visit www.veritascapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210908005514/en/

Media inquiries

David Franecki

+1 212 231 1310

david.franecki@macquarie.com

Source: Macquarie Capital

FAQ

What is the purpose of Macquarie Capital selling Dovel Technologies?

The sale aims to enhance Guidehouse's capabilities in health IT and advanced analytics.

What are the expected benefits of Dovel's acquisition by Guidehouse?

Dovel's expertise will expand Guidehouse's service offerings in health, national security, and infrastructure.

When is the expected closing date for the Dovel acquisition?

The transaction is expected to close in Q4 2021, pending regulatory approvals.

Who acted as financial advisor in the Dovel transaction?

Macquarie Capital acted as financial advisor to Dovel in the acquisition deal.