Xcelerate Solutions Merges with VMD Corp

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Feb 06, 2024, 10:00 ET

MCLEAN, Va., Feb. 6, 2024 /PRNewswire/ -- Xcelerate Solutions ("Xcelerate"), a leading defense and national security company and portfolio company of McNally Capital, today announced it has merged with VMD Corp ("VMD"). Based in Fairfax, Virginia, VMD is a cybersecurity, agile engineering, and critical infrastructure protection firm. The combined company will go to market as Xcelerate Solutions, offering a comprehensive, mission-first portfolio of secure solutions to the federal government.

"We see this merger as a win-win. We share similar cultures, like-minded leadership, and a deep commitment to delivering positive mission outcomes," said Mark Drever, Chief Executive Officer of Xcelerate. "Since the investment from McNally Capital, we've been actively looking to expand our security and IT capabilities through M&A. VMD is a great match. Together, our expanded capabilities, contracts and specialized expertise make a powerful statement to the government market."

The combined company boasts an experienced team of over 1,000 technology professionals dedicated to delivering a broad spectrum of cybersecurity, enterprise, and infrastructure protection services focused on mission-first delivery. The depth and versatility of Xcelerate's expanded capabilities and contracts present opportunities for diversification and growth across its defense, law enforcement, national security, civilian agencies, and throughout the federal government.

"We are excited about what this merger will mean to our clients," echoed VMD co-founders Deepti Malhotra, Chief Executive Officer and Vivek Malhotra, President. "Not only will it broaden our portfolio, but it will allow us to leverage the strengths of both companies offering new solutions across our engagements."

Xcelerate plans to capitalize on the combined strengths of both companies, foster a mission-first culture, align leadership, and crystallize its go-to-market portfolio to best serve federal clients in the coming months.

McNally Capital was instrumental in this transaction. "We are excited to welcome VMD to Xcelerate and the broader McNally Capital portfolio. Like Xcelerate, VMD has built a reputation for trusted delivery, deep technical talent, and engineering prowess. We believe this will provide a solid foundation for future growth," said Michael Ember, Vice President of McNally Capital.

Ropes & Gray LLP served as legal counsel for this transaction. Nelson Mullins provided legal counsel on behalf of VMD.

About Xcelerate Solutions

Xcelerate Solutions is a leading defense and national security company, providing integrated solutions in enterprise security, strategic consulting, and digital transformation. Xcelerate enhances the security and resilience of America's personnel as well as physical and cyber infrastructure. The company is a trusted partner to Federal Law Enforcement, the Department of Defense, and Intelligence Community agencies that are responsible for the security and safety of the United States. For more information, please visit www.xceleratesolutions.com.

About VMD Corp

VMD is a vision, mission, driven company that has been delivering information technology solutions to the Federal government in agile engineering, cybersecurity, and critical infrastructure protection since 2002. For more information, please visit www.vmdcorp.com

About McNally Capital

McNally Capital is a lower middle-market private equity firm targeting thesis-driven investments in the U.S., specifically focused on acquiring founder and management-owned companies. Formed by the McNally family, who owned and operated Rand McNally & Company, McNally Capital is dedicated to upholding a 160+ year legacy as a family-owned and operated company. The firm seeks to apply its hands-on experience, institutional capabilities, and proprietary value creation framework to its portfolio companies to benefit management teams in their next phase of growth and build value for its investors. For more information, please visit www.mcnallycapital.com.

SOURCE Xcelerate Solutions