IBM | December 08, 2022
IBM (NYSE: IBM) today announced an agreement to acquire Octo, a U.S.-based IT modernization and digital transformation services provider exclusively serving the U.S. federal government, including defense, health, and civilian agencies. IBM's acquisition of Octo establishes one of the largest digital transformation partners to the federal government. Upon the close of the acquisition, Octo's approximately 1,500 employees will join IBM Consulting's U.S. public and federal market organization.
Octo will be IBM's eighth acquisition of 2022. Since Arvind Krishna became CEO of IBM in April 2020, IBM has acquired more than 25 companies, bolstering its hybrid cloud and artificial intelligence (AI) capabilities. Today's news builds on prior IBM Consulting acquisitions, including Dialexa, Neudesic, and Taos.
Federal government agencies face significant challenges including technology skills shortages, rebuilding of U.S. domestic supply chains and more demand for citizen services. To address these complex challenges, agencies need an industry partner to help them navigate a scalable path to IT modernization with the power to leverage emerging technologies and applications, optimize costs and operational efficiencies, and improve security. The convergence of new hybrid cloud and AI technologies enables government to deliver rapid improvements and adapt to unprecedented challenges.
The acquisition of Reston, Va.-based Octo will complement IBM's existing strengths in IT modernization and digital transformation, enhancing its ability to support federal agencies with a flexible, modern approach to digital transformation and growing IBM Consulting's public and federal market organization to 4,200 highly-skilled employees. With a proven track record of enabling rapid IT modernization and seamless citizen engagement, Octo also brings deep federal mission experience, as well as certifications in the technologies most used across the federal government.
"Governments require agility and resiliency to meet the evolving needs of citizens directly and in real time," said John Granger, Senior Vice President of IBM Consulting. "The combination of Octo's highly qualified and respected team with IBM's consulting expertise, technical capabilities and strategic partner ecosystem will enable federal clients to transform faster and better serve citizens."
Building on a shared commitment to co-creation, oLabs, Octo's 14,000 square foot innovation center with in-house computing capability, expands IBM's ability to work collaboratively with federal agencies to rapidly prototype emerging technology solutions – enabling greater impact for federal agencies and the people they serve.
"Octo was founded on the belief that digital transformation could be delivered at scale to modernize the federal government's approach to today's most pressing challenges – from public healthcare to national security, to defense and intelligence," said Mehul Sanghani, Chief Executive Officer of Octo. "Today, we are excited to join forces with IBM to continue to deliver these digital transformation capabilities with greater reach and scale."
IBM's acquisition of Octo from Arlington Capital Partners is expected to close in the fourth quarter of this year and is subject to customary closing conditions and regulatory clearances. Financial details of the deal were not disclosed.
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's legendary commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
Boston Government Services | December 07, 2022
Bernhard Capital Partners ("Bernhard Capital"), a services- and infrastructure-focused private equity management firm, today announced the establishment of a dedicated Department of Energy ("DOE") services platform through the recent acquisitions of Boston Government Services, LLC ("BGS"), an engineering, technology and security firm for government programs, national laboratories, national security facilities, nuclear operations and complex projects, and Sterling Engineering & Consulting Group, LLC ("SE&C"), a provider of executive, project management, business development and technical consulting services focused on the DOE complex. Financial terms of the transactions were not disclosed.
The platform will establish a leading national network of engineering and consulting firms with shared capabilities and an expanded client base, primarily consisting of organizations operating within the Department of Energy ("DOE") complex. Established in 2007 by Harry L. Boston, Ph.D., BGS is a nuclear engineering, safety, program management, technology and cyber security firm providing mission-driven solutions for a broad array of challenging and important programs for government and commercial clients.
Bernhard Capital has an extensive track record building leading national platforms across numerous services- and infrastructure-related categories. Through these acquisitions, the firm intends to utilize its proprietary Blueprint investment approach to establish a vertically integrated offering, capable of executing critical projects in complex environments – from strategic planning and program management to the execution of engineering and technical activities.
"The acquisitions of BGS and SE&C provide unique and valuable capabilities for our platform and will meaningfully expand our premier consulting and field service offerings around the DOE complex, As the DOE and broader commercial industries continue to invest ambitiously in clean energy, energy security, modernization and transitioning our energy grid and national infrastructure, the expertise of the BGS and SE&C teams will be invaluable to driving the long-term success of these essential national, regional and local projects. We look forward to working closely with Harry, Duane and their talented teams as we build an exceptional platform and execute on a shared vision to better support a diverse base of mission-critical government and commercial clients."
-Chris Dillon, Managing Director at Bernhard Capital Partners.
BGS and SE&C will continue to be led by their respective management teams, while benefiting from the advantages of the shared platform and Bernhard Capital's strategic partnership. Harry Boston will continue as President of BGS, and Duane Schmoker will continue as President of SE&C.
The opportunity to join Bernhard Capital's DOE services platform and partner with the SE&C team provides additional resources and capacities for the BGS team to continue delivering the best engineering, technology, cybersecurity and program management solutions for our clients, from strategy and conception to implementation and execution, said Dr. Boston. The Bernhard Capital team's operational expertise and deep familiarity with the complexities of our business make them the right partner to position BGS for long-term growth, and we are well positioned to continue providing high-quality, efficient and committed services to our clients as part of this platform.
Founded in 2014 by Duane Schmoker and headquartered in Richland, Washington, SE&C provides executive management and technical consulting services to organizations in the federal and commercial markets focused primarily on energy, environmental remediation and national security. Offering strategic planning, business development, proposal development, project management and technology-based solutions for some of the world's most challenging government and commercial environmental cleanup projects, SE&C focuses on providing innovative technical and business solutions for clients with a focus on the DOE and commercial markets.
"We are excited to join BGS as part of Bernhard Capital's dedicated DOE services platform and are confident this partnership will benefit all SE&C stakeholders, Bernhard Capital's perspective and experienced team, alongside BGS's deep relationships and premier technical team, will allow us to enhance our technical and management capabilities and expand our presence around the DOE complex and other government-adjacent markets."
-Mr. Schmoker, SE&C President.
About Bernhard Capital Partners:
Bernhard Capital Partners is a services and infrastructure-focused private equity management firm established in 2013. Bernhard Capital Partners has deployed capital in three funds across several strategies, has approximately $2.5 billion of gross assets under management and is ranked as one of Private Equity International's 300 largest private equity firms worldwide. Bernhard Capital Partners seeks to create sustainable value by leveraging its experience in acquiring, operating and growing services and infrastructure businesses.
Boston Government Services, LLC is an engineering, technology, and cybersecurity firm advancing our national security and competitiveness, and promoting a sustainable and healthy environmental future. BGS delivers mission-focused solutions by leveraging capabilities in engineering, operations, technology and cybersecurity to provide clients with solutions that enable efficient, secure, safe, robust, and sustainable mission performance. BGS is headquartered in Oak Ridge, Tennessee and has offices in multiple states.
SE&C is a Richland, Washington-based provider of executive management and technical consulting services to organizations in the federal and commercial markets focused on energy, environmental remediation, national security and mining. The company has satellite offices in Idaho Falls, Idaho, and Albuquerque, New Mexico. With more than 65 senior professionals providing clients with expertise ranging from strategic planning, business development, proposal development, project management and technology-based solutions, SE&C supports some of the world's most challenging government and commercial environmental cleanup projects.
Kodiak Robotics | December 07, 2022
Kodiak Robotics, Inc., a leading self-driving trucking company, today announced it has been awarded a $49.9 million, 24-month United States Department of Defense (DoD) agreement to help automate future U.S. Army ground vehicles led by the Army's Robotic Combat Vehicle (RCV) program. This effort will be in support of vehicles designed for reconnaissance, surveillance, and other high-risk missions.
Through this award, which started in October 2022 and was awarded by DoD's Defense Innovation Unit (DIU) on behalf of the Army's RCV program office, Kodiak will leverage its commercial self-driving software to develop, test and deploy autonomous capabilities for driverless vehicles that further strengthen national security. Kodiak will develop autonomous vehicle technology for the Army to navigate complex terrain, diverse operational conditions and GPS-challenged environments, while also providing the Army the ability to remotely operate vehicles when necessary.
Wartime is extraordinarily complex with high-risk challenges that often result in troops operating near or behind enemy lines. Deploying autonomous vehicles to perform such critical and dangerous tasks has the potential to significantly reduce the risk to troops, while giving them greater access to the information they need in the field. Additionally, the remote driving capabilities Kodiak will develop for the Army will increase the flexibility of these autonomous vehicles, while further reducing risk for soldiers. The project will also provide a technical pipeline that will enable the rapid development and deployment of new autonomous vehicle technologies as they become commercially available.
"I started Kodiak because I believe autonomous technology can save lives, and helping the U.S. Army develop driverless vehicles for the most challenging operating environments fits perfectly with that goal, We are proud to have the opportunity to leverage our cutting-edge self-driving technology for defense applications, and believe our work with DIU and the U.S. Army will both help strengthen national security and hasten our path to commercial deployment. We owe a debt of gratitude to the servicemen and women who step into harm's way to keep us safe; keeping them safe in return is an honor we take seriously."
-Don Burnette, founder and CEO, Kodiak Robotics.
Kodiak Robotics was the only autonomous vehicle company initially selected for this award out of 33 submissions, thanks to its proven leadership in autonomous systems development and commercialization, as well as its intense focus on safety.
In the first year of this effort, Kodiak will build upon its core competency by applying its robust autonomous software stack for Army specific use cases, including future Army vehicles. In year two, the company will implement its autonomous driving system on off-road vehicles capable of traversing complex terrain and operating remotely in unpredictable and austere conditions.
DIU focuses exclusively on adopting and scaling technologies developed by commercial partners to help strengthen U.S. national security by solving critical field challenges faced by the U.S. military. DIU works to identify innovations in six key technology areas where the commercial sector is operating at the leading edge: artificial intelligence, autonomy, cyber, energy, human systems, and space.
While Kodiak Robotics will continue to focus on its core business of building autonomous trucks for use in commercial applications, this project serves as an important extension that helps to propel its innovations forward. This project shows that Kodiak's core technology has multiple use cases, laying the groundwork for future expansion beyond long-haul trucking.
About Kodiak Robotics, Inc:
Kodiak Robotics, Inc. was founded in 2018 to develop autonomous technology that carries freight forward — so people, partners, and the planet thrive. The company is developing an industry-leading technology stack purpose-built specifically for long-haul trucks, making the freight industry safer and more efficient. Kodiak's unique modular hardware approach integrates sensors into a streamlined sensor-pod structure that optimizes for perception, scalability, and maintainability. The company delivers freight daily for its customers across the South, operating autonomously on the highway portions of the routes.