Exclusive financial advisor to Epsilon

Founded in 2009 and headquartered in Weaverville, NC, Epsilon works with DoD and FedCiv customers to design and deliver context-specific government modernization solutions, including managed IT, cybersecurity, cloud hosting, and managed network services that harmonize IT support, security, and services. The Company has unique capabilities and contracts that provide IT Hosting, Cybersecurity and Professional Services solutions to FedCiv as well as IT and cybersecurity support for classified IT networks for DoD customer sets.

Epsilon has experienced tremendous growth and currently supports 15 federal contracts across 10 federal agencies, including prime contracts at F35 JPO, USPTO, USDA, DOE, USMC, and IRS and operates through 4 locations. The acquisition of Epsilon represents the largest transaction in AMERICAN SYSTEMS’ 50-year history and adds approximately 400 new employees.

“Joining AMERICAN SYSTEMS allows us to take everything that we have built over the past sixteen years and make it even better.” said Peter Penzell, CEO of Epsilon. “Expanding on what we have built while giving our employees the opportunity to become employee-owners in AMERICAN SYSTEMS creates an amazing opportunity for everyone.” The deal allows AMERICAN SYSTEMS to broaden its client base and expand its service offerings in support of federal and commercial customers.

This deal highlights a number of Government Services M&A trends:

• Strong activity and a desire for specialized DoD capabilities supporting high-end mission sets and DoD platforms
• Commercial approach to solving U.S. Federal IT challenges
• Well-funded backlog providing multi-year revenue and cash flow visibility
• Support of key national security agencies with funding and IT needs aligned with government spending priorities

American Systems

AMERICAN SYSTEMS is a privately-held, employee-owned, professional, technical and IT services provider to Defense, Intelligence, Federal Law Enforcement and Healthcare customers. AMERICAN SYSTEMS provides IT, Engineering & Analysis, Program Mission Support, Test & Evaluation, and Training solutions to a variety of federal Defense, Civilian and Intel agencies.

KPMG Corporate Finance, LLC

The global Corporate Finance practice of KPMG International’s network of independent member firms was ranked #1 as the top M&A middle-market adviser globally by Refinitiv, based on number of completed transactions, for the past 20 years.

Trust KPMG Corporate Finance, LLC with your next transaction.