Private Equity Firms MDP And CoVant Announce Acquisition Of AEVEX Aerospace

Private equity firms, Madison Dearborn Partners (MDP) and CoVant Management announced that they had acquired majority ownership of airborne intelligence solutions company, AEVEX Aerospace. The transaction is expected to be closed by the end of the first quarter. Terms of the acquisition were not disclosed.

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Founded in 2017, AEVEX provides airborne intelligence, surveillance, and reconnaissance. Notably it supports US national security, military, other federal agencies, commercial businesses, and the safety of US citizens around the world. The company has offices in Daytona, California, North Carolina, Virginia, and Massachusetts with approximately 600 employees located throughout these locations. Trive Capital formed AEVEX in 2017 through a merger of portfolio company Merlin Global Services and CSG Solutions.

“We are excited to welcome the MDP and CoVant teams to AEVEX," Chief Executive Officer Brian Raduenz announced. "They are the right partners to help us deepen and expand our AISR solutions and are fully aligned with our commitment to empowering people to make the world a safer place. Our new partnership with MDP and CoVant will enable us to accelerate our investment in innovation, attract and retain the very best talent, and provide our customers with the decision advantage they need in dynamic mission environments.”

The acquisition is set to help the company’s mission of helping the government protect and strengthen national security. It will also benefit from CoVant and MDP’s partnership that boasts years of experience, extensive relationships and resources in the federal technology solutions marketplace. The private equity firms have worked together for eight years. In 2018, the partnered firms acquired LinQuest Corporation, a leading space systems integrator.

Head of MDP’s Business & Government Software & Services team, Matt Norton said that CoVant and MDP plan to help AEVEX continue growing by investing in its “business development and pipeline expansion, technology research and development, and pursuit of strategic acquisition opportunities.”

William Blair served as AEVEX’s financial adviser and Haynes and Boone LLP served as legal adviser. Kirkland & Ellis LLP and Crowell & Moring LLP served as legal advisers to MDP and CoVant. CSP Associates and The Chertoff Group provided transaction advisory services to MDP and CoVant. Additionally, in support of the acquisition by MDP and CoVant, debt financing will be provided by GSO Capital Partners, an affiliate of The Blackstone Group, and Carlyle Global Credit.