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Baird’s Alex Sevilla Outlines Impacts of GRSi Acquisition by DLH

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On Thursday, it was announced that technology health and human services company DLH Holdings acquired Grove Resource Solutions Inc. for $185 million.

The latter, Bethesda, Maryland-based organization specializes in cybersecurity and cloud-based enterprise modernization, as well as systems engineering, technology insertion and other information technology support services aimed at the public sector, GovCon Wire reported Friday.

Baird was the financial advisor for GRSi on the transaction.

“The DLH acquisition of GRSi is highly strategic – the combined companies create a mid-tier powerhouse in strategic consulting and digital transformation to federal health agencies and beyond,” said Baird Managing Director of Global Technology and Services Alex Sevilla in an exclusive comment to ExecutiveGov.

The move was seen as part of an effort on DLH’s part to deepen its portfolio of IT modernization, digital transformation and cybersecurity capabilities in its work with the federal government. GRSi is set to provide approximately $140 million of annual revenue as a wholly owned subsidiary of DLH going forward. The primary existing leadership of DLH are expected to remain in place.

GRSi brings a customer base of agencies and service branches such as the U.S. Navy, Marine Corps and the National Institutes of Health to its new ownership.

According to DLH, the deal’s funding was made possible via an amendment to its secured credit facility. The purchase price consists of $178 million in cash and $7 million of equity. First National Bank of Pennsylvania was a participating agent and F.N.B. Capital Markets, Atlantic Union Bank and M&T Bank served as joint lead arrangers.

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