Client Story: HMS Technologies
Acquisition allows a former JAWS Officer to exit his GovCon business
The Challenge:
Harry Siegel, a former JAWS Officer and Founder of HMS Technologies, grew a successful government contracting business in West Virginia. The company had both set-aside designations and Full and Open telehealth and IT contracts that offered a substantial growth opportunity for a potential buyer. The owner was also looking to spend more time with his younger son in retirement.
The Approach:
During the due diligence process, it was clear that HMS needed to transfer their telehealth and Transformation Twenty-One Total Technology-Next Generation (T4NG) government contracts to a small SDVOSB to realize their full value. Sierra7 purchased the T4NG vehicle. Some of the remaining HMS assets were purchased by Cognosante, a leading healthcare IT company. Both buyers had a real appetite for HMS’ top contracts and a vision for how to grow them in the future. The transactions took less than three months to complete.
The Impact:
The result was a win-win for both buyers and the seller. Sierra7, fueled by the T4NG vehicle, is poised for significant growth and Cognosante has benefited from HMS bolt-ons. Meanwhile Harry Siegel is enjoying his new life in the Florida Keys.
COMPANY:
HMS Technologies, Inc.
INDUSTRY:
IT Services
OUR ROLE:
Sellside Advisor