GOVERNMENT BUSINESS

Combination of Octo with Sevatec Establishes the Premier Pure-Play IT Modernization to the Federal Government

Octo | December 16, 2020

Octo, a chief supplier of arising innovation and IT modernization administrations for the Federal Government, reported today its mix with secretly held, Fairfax-based Sevatec, a main supplier of strategic programming advancement arrangements and computerized modernization administrations to the Federal Government. The blend of Octo and Sevatec makes an exceptionally deft accomplice to government clients that can address complex innovation challenges with development, high-contact administration, and generous specialized and operational assets.

The joined association has developed each year since initiation and today creates almost $300 million in income and utilizes around 1,100 talented workers committed to addressing specialized difficulties for government clients across the Defense, Intelligence, National Security, Federal Health, and Civilian commercial centers.

Established in 2003, Sevatec drives progressions in innovation, open-source tooling, business best practices in human-focused plan, Agile conveyance, DevSecOps, start to finish security, cloud administration joining, information designing, and computerization. With nearly $400 million in late prime Digital Modernization contract wins, exceptionally essential agreement vehicles, and separating advancements, for example, ShiftUp™, Sevatec has strong force in key business sectors and makes reciprocal extension open doors for the consolidated business to seek after.

Sonny Kakar, Founder and CEO of Sevatec, said, “I have known Mehul for years and have admired deeply what Octo has been able to achieve. Octo was the only company we considered for such a transaction because of our shared values and cultural alignment. While the industrial logic of the merger resonated tremendously with us both, it also became evident that it would create significant growth opportunities for our employees and allow the combined business to compete at scale and solve some of the most pressing challenges facing our customers. In a market full of multi-billion-dollar organizations that provide a wide variety of traditional products and services, customers are seeking highly specialized, mid-sized technology partners with deep experience in digital modernization, which is exactly what the combination of Octo and Sevatec offers.”

Sevatec’s core leadership team will play leadership roles in the combined business. As part of the transaction, Sonny Kakar will serve as Vice Chair of the Board and Head of Strategy while Tim May, Sevatec’s Chief Growth Officer, will serve as the Chief Growth Officer for the combined organization, a position that was previously unfilled at Octo. Furthermore, Chuck Schefer, EVP at Sevatec, will serve as EVP managing programs in the GSA, DHS, and USPTO markets, among others. Mehul Sanghani will continue to serve as the combined firm’s CEO.

The consolidated firm will incorporate market-driving exclusive arrangements and marked protected innovation covering the full modernization range from DevSecOps (ShiftUp™) to Agile Software Engineering (Javana) to Open Source Software Development (Octo CX), to Artificial Intelligence and Blockchain arrangements, all oversaw and improved inside Octo's oLabs™ R&D office.

The joined firm will likewise incorporate an unrivaled profundity of enormous scope modernization capabilities and experience across the whole federal space with establishment positions in a few organizations. Organizations profiting by the consolidated organizations' endeavors incorporate significant modernization programs inside the Intelligence Community at the National Geospatial Intelligence Agency (NGA); inside National Security on groundbreaking projects across the Department of Homeland Security (DHS); and at present day programming industrial facilities being stood up inside the DoD, for example, the Air Force's Kessel Run program. Octo and Sevatec additionally have significant parts at Health and Human Services (HHS) on activities across the National Institutes of Health (NIH) and significant modernization programs at Civilian offices like the General Services Administration (GSA), Department of Transportation (DoT), and Patent and Trademark Office (USPTO).

“With this transaction, I firmly believe we have created a unique, market-shaping organization that is unmatched in terms of its collective ability to be a pure-play modernization and technology solutions provider to the Federal Government and its wide-ranging missions,” said Mehul Sanghani, Octo’s Founder and CEO. “I truly believe no other firm in the federal market can boast a combined culture of innovation and a combined talent base of high-end engineers with expertise in Agile/DevSecOps, open-source software development, cloud engineering, cyber, and artificial intelligence. More importantly, very few federal technology providers can cite large scale modernization success across the end-to-end breadth of mission systems we do collectively – from the Intelligence Community to Health Care Agencies to Defense Systems to National Security and Civilian missions, our breadth of modernization support covers the gamut.”

“Over the years, we have teamed with Sevatec – and competed against them – and through it all there has always been a mutual respect between us that laid the groundwork for today’s announcement,” Sanghani continued. “I have long admired the company Sonny has built, and I am elated that we were able to find a partner in Sevatec that complements Octo in so many ways, one that also shares our unwavering commitment to our employees, customers, and the community.”

“Individually these two companies are extremely well-managed and consistently deliver for their customers, while also caring for their employees. You see that reflected in their continuous growth through the years,” said Michael Lustbader, Managing Partner at Arlington Capital Partners. “We have admired Sevatec for some time, and we felt this would be a fantastic combination. Arlington is really excited to see what can be accomplished together.”

Octo, founded by Mehul Sanghani in 2006, partnered with Arlington Capital in April 2019 and subsequently acquired Phoenix-based Connexta, LLC, a provider of open-source software to the DoD and Intelligence Community.

Sheppard Mullin served as legal advisor to Octo on this transaction. Pillsbury Winthrop Shaw Pittman LLP served as legal advisor, and Baird served as exclusive financial advisor to Sevatec on this transaction.

About Octo

Octo challenges the status quo, empowering federal agencies to leap IT hurdles by using emerging technologies to create transformative solutions that enable rapid modernization, enhance citizen engagement, and maximize human impact. We continually explore ways to transform IT, producing results vital to national security, intelligence, health care, and more.

About Sevatec

Sevatec builds the software that powers exceptional government missions. Our Digital Software Supply Chain, ShiftUp™, which brings together commercial best practices and advanced technology tools in Agile delivery, human-centered design, DevSecOps, Cloud, Security, and Data, has helped us modernize several hundred applications across the Federal Government. Founded in 2003 on the concept of “Seva,” meaning “to serve a greater purpose,” we serve the missions of Homeland and Law Enforcement agencies, Department of Defense, General Services Administration, Department of Transportation, and multiple civilian departments and agencies.

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