Island Empire and Neural Investments have jointly acquired DigitalSpec (DSPEC), an IT consulting firm focused on federal government agencies. Financial terms of the deal were not disclosed.
This is technology M&A deal number 671 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
DSPEC, based in Fairfax, Virginia, is an IT and digital solutions firm that works with federal and commercial clients around the United States and in the greater Washington, D.C. area.
DSPEC, founded in 2005, will maintain its current branding and identity as a wholly-owned subsidiary of Island Empire. Charles Dadoo and Vishal Dadoo remain CEO and chief growth officer, respectively, of DSPEC.
Island Empire is a Native Hawaiian Organization (NHO) based in Kailua. The company is in the midst of applying for certification as an NHO-owned business with the Small Business Association, which would allow it to leverage its IT consulting services to the U.S. Department of Defense (DoD) through sole-sourced contracts, according to the company.
Kuleana and the Acquisition Of DigitalSpec
Tautua Reed, chairman, Island Empire, commented:
"Together we can leverage larger sole-source contracts, empowering Native Hawaiians both socially and culturally by creating economic benefits through our various giveback programs. It is our mission to follow through on our Kuleana (responsibility and privilege) to provide for Native Hawaiians in the way for which the NHO and 8(a) program has intended.”
Charles Dadoo, CEO, DigitalSpec, added:
"This is an exciting day for the DSPEC Team as we join industry stalwarts in creating a culture of team member engagement, customer centricity and innovation.”
Vishal Dadoo, CGO, DigitalSpec, said:
"As a co-founder of DIGITALSPEC, I am extremely excited that this acquisition will allow us to create a platform company with the leadership, infrastructure, and ideation necessary to attract strong business partners and position us for exponential growth.”
Government IT M&A
Merger and acquisition (M&A) deals surrounding government IT service providers has been steady, with numerous first-time buyers, private equity firms, and strategic buyers jumping into the market.
A detailed list of government IT-related deals can be found here.
