Press Releases

The Chertoff Group Marks First Full Year as Strategic Advisors on Multiple Security-Related Aquisitions in 2010

January 4th, 2011

WASHINGTON, D.C. – Leveraging its unique subject matter knowledge of the homeland security, defense and intelligence sectors, The Chertoff Group provided strategic advice to its clients, including strategic and financial acquirers, on several key transactions in 2010.   These transactions, totaling more than $2.1 billion in enterprise value, involved companies that provide technologies and solutions across a spectrum of security subsectors including biometrics, satellite systems engineering, personnel protection, security training, cyber security and data analytics.  In 2010, The Chertoff Group acted as a strategic advisor for the following transactions:

Safran Group Enters Definitive Agreement to
Acquire L-1 Identity Solutions

On September 20, 2010, the Safran Group announced a definitive agreement with L-1 Identity Solutions to purchase L-1’s Biometric, Secure Credentialing and Enrollment Services for $1.09 billion in cash on hand.  Once the transaction is complete, Safran intends to incorporate these L-1 divisions as part of the Safran Group’s existing security business, Morpho, and solidify Safran’s presence as an industry leader for biometrics and identity management solutions.  The transaction is expected to close during 2011, subject to regulatory approvals.

During this transaction, The Chertoff Group served as strategic advisors to Safran.  The Chertoff Group members of the advisory team included:  Michael Chertoff, Co-founder and Managing Principal at The Chertoff Group; Chad Sweet, Co-founder and Managing Principal at The Chertoff Group; and J. Bennet Waters PhD., Managing Director and Chief Operating Officer at The Chertoff Group.

Veritas Capital Acquires Enterprise Integration Group (EIG)

On October 13, 2010, Veritas Capital Fund IV announced its agreement to acquire the Enterprise Integration Group (EIG), a division of Lockheed Martin, for $815 million.  EIG has been renamed as “The SI” and is a leading systems provider for architecture, engineering and integration services and support to the U.S. intelligence community. Veritas Capital and management intend to significantly grow opportunities for The SI as one of their portfolio companies dedicated to providing critical products and services to governments worldwide.  This transaction officially closed on November 23, 2010.

During this transaction, The Chertoff Group served as a strategic advisor to Veritas Capital.  The Chertoff Group members that advised on this transaction included the following professionals: General Michael Hayden, Principal at The Chertoff Group and former Director of the CIA and NSA; Chad Sweet, Co-founder and Managing Principal at The Chertoff Group; Charles Allen, Principal at The Chertoff Group with more than 40 years of service at the CIA; Paul Schneider, Principal at The Chertoff Group and former U.S. Department of Homeland Security Deputy Secretary; and Brian White, Managing Director at The Chertoff Group.

UTSC Holdings Acquires Xe Services

On December 17, 2010, UTSC Holdings, LLC, an investment company formed by a consortium of private equity firms led by Forté Capital Advisors and Manhattan Growth Partners, announced its decision to acquire Xe Services. Xe Services is a leading provider of training and technical services focused on worldwide diplomatic security operations.  The acquisition specifically includes Xe companies that provide security services as well as domestic and international training, including Xe’s state-of-the-art training facility in Moyock, N.C. which has provided training to more than 50,000 U.S. government personnel. 

As part of this transaction, The Chertoff Group served as strategic advisors to USTC Holdings.  The Chertoff Group members of the advisory team included:  Michael Chertoff, Co-founder and Managing Principal at The Chertoff Group; General Michael Hayden, Principal at The Chertoff Group and former Director of the CIA and NSA; Charles Allen, Principal at The Chertoff Group with more than 40 years of service at the CIA; Nat Fogg, Managing Director at The Chertoff Group; Gary Shiffman, Managing Director at the Chertoff Group; and Joseph Bernabucci, Senior Associate at The Chertoff Group, among others.

Arlington Capital Partners Invests in White Oak Technologies

On November 22, 2010, Arlington Capital Partners announced its investment in White Oak Technologies, Inc., a leading provider of identity resolution, cyber security and data analytics to federal government customers.  Through its newly established portfolio company Data Technologies and Analytics, Arlington Capital Partners will help White Oak Technologies and Analytics grow and expand its critical national security services and IT solutions among clients, including the U.S. federal government and elements of the U.S. Intelligence Community. 

The Chertoff Group served as strategic advisors to Arlington Capital in its acquisition of White Oak Technologies, Inc. Members of the advisory team included:  Chad Sweet, Co-founder and Managing Principal of The Chertoff Group; General Michael Hayden, Principal at The Chertoff Group and former Director of the CIA and NSA; Charles Allen, Principal at The Chertoff Group with more than 40 years of service at the CIA; Paul Schneider, Principal at The Chertoff Group and former U.S. Department of Homeland Security Deputy Secretary; and Graham Love, Principal at The Chertoff Group and former CEO of QinetiQ.