NewSpring Launches its Next Federal Services Platform with Acquisition of Xpect Solutions

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Oct 15, 2024, 09:00 ET

Xpect Solutions provides cutting-edge Enterprise IT and security solutions to federal law enforcement and civilian agencies

RADNOR, Pa., Oct. 15, 2024 /PRNewswire/ -- NewSpring ("the Firm"), a family of private equity strategies, today announced that NewSpring Holdings, the Firm's majority investment strategy focused on sector-specific platform builds, has acquired Xpect Solutions (Xpect), a leading provider of cutting-edge Enterprise IT and security solutions to the Federal Bureau of Investigations (FBI), Department of Justice (DOJ) and the National Institutes of Health (NIH) agencies. This is the third active platform investment within the NewSpring Holdings Federal Platform, a group of innovative businesses that provide mission-critical solutions to meet the sophisticated needs of the U.S. Government.

Xpect offers a wide range of solutions, including engineering and network infrastructure, cybersecurity, cloud services, and data center management. They emphasize secure and reliable technology tailored to meet the complex requirements of federal entities, ensuring mission-critical operations that help federal agencies anticipate and combat evolving criminal threats. The company is known for tackling hard problems and delivering actionable results through its team of experienced leaders, technical prowess, and deep understanding of customer missions.

NewSpring Holdings' thesis-driven approach includes collaborating with industry leaders–skilled operators who possess domain expertise to create exceptional value. With this acquisition, NewSpring is partnering with federal law enforcement experts Yusuf Abdul-Salaam and Amaha Tsegaye to lead the platform, with Yusuf stepping in as Xpect CEO and Amaha as COO.

"Partnering with Yusuf and Amaha to execute this acquisition marks a pivotal moment in advancing our momentum in the federal sector. With Xpect, we are expanding our platform to address the growing complexity in serving federal law enforcement agencies' missions," said NewSpring General Partner Lee Garber. "Xpect's technical expertise and deep domain understanding, combined with NewSpring Holdings' proven growth strategies and disciplined M&A approach, position us to provide scalable, mission-critical solutions that deliver both innovation and operational impact."

Yusuf Abdul-Salaam is an innovative leader who has supported the federal law enforcement community for 15 years, helping companies deliver mission technology solutions across multiple federal law enforcement agencies. Amaha Tsegaye is a seasoned operations and delivery executive with over 15 years of experience supporting national security customers across various technical disciplines. Together, they bring a proven track record of building scalable leadership teams and operational models, positioning the platform for sustainable growth.

"Xpect possesses the agility to react quickly to evolving threats, deep network engineering expertise, and dedication to innovation needed by federal law enforcement and other key agencies to adapt and respond to today's increasingly sophisticated criminals," said incoming Xpect CEO Yusuf Abdul-Salaam. "As a solutions-focused law enforcement business known for tackling hard problems and delivering actionable results, Xpect has built a strong foundation for future growth, and I look forward to working alongside the entire team as we continue to advance our mission and capabilities."

Former Xpect CEO Ash Halim will move into the role of President and stay closely involved in the company's day-to-day operations.

"Our strengths and expertise in network and physical security have helped our customers build and maintain environments that provide the performance, reliability, and security that are fundamental in supporting their critical missions," said Xpect President Ash Halim. "NewSpring Holdings has an established reputation for successfully investing in technology-enabled services within the federal market, and we see them as the perfect partner for this next chapter."

Xpect, like all NewSpring Holdings Federal Platform companies, will benefit from the strategic guidance of the NewSpring Holdings Federal Advisory Board, a distinguished group of federal services experts led by Andy Maner, whose extensive leadership includes his tenure at the U.S. Department of Homeland Security and U.S. Customs and Border Protection and NewSpring Holdings Federal Operating Partner Chris Blahm, former Chief Growth Officer of Avantus. As part of this transaction, Thomas Sobocinski will join the Xpect Board of Directors. A federal law enforcement veteran, Sobocinski served 25 years with the Federal Bureau of Investigation (FBI) before joining TD International (TDI) as a Partner.

Xpect joins NewSpring Holdings Platform Companies BCore, a prominent leader in mission-centric solutions for the Department of Defense and the Intelligence Community, and C Speed, a leading provider of advanced radar systems and engineering solutions for both civilian and military applications, and follows the earlier success of Avantus Federal, which sold for $590 million in 2022.

NewSpring was advised by Blank Rome and PricewaterhouseCoopers (PwC). KPMG Corporate Finance and Miles & Stockbridge served as advisors to Xpect Solutions.

About NewSpring

NewSpring is a lower-middle market focused private equity firm that partners with the innovators, makers, and operators of high-performing companies in dynamic industries to catalyze new growth and seize compelling opportunities. The Firm manages approximately $3.5 billion across five distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Having completed over 250 investments, NewSpring brings a wealth of knowledge, experience, and resources to take growing companies to the next level and beyond. Partnering with management teams to help develop their businesses into market leaders, NewSpring identifies opportunities and builds relationships using its network of industry leaders and influencers across a wide array of operational areas and industries. To learn more, visit www.newspringcapital.com

About Xpect Solutions

Xpect Solutions is a leading provider of Enterprise IT services, focused on supporting federal government agencies. The company offers a broad range of solutions, including cybersecurity, cloud services, network infrastructure, and data center management. They emphasize secure and reliable technology tailored to meet the complex requirements of federal entities, ensuring mission-critical operations run smoothly. Xpect Solutions is known for its strong expertise in network engineering, helping agencies protect sensitive data and comply with federal standards. They offer end-to-end services from risk assessment and security architecture to continuous monitoring and incident response.

SOURCE NewSpring