CLIENT STORY: HMS TECHNOLOGIES

Acquisition allows a former Navy Seal to exit his GovCon business

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Challenge:

Harry Siegel, a retired Navy Seal 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.

CLIENT:

HMS Technologies, Inc.

INDUSTRY:

IT Services

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.

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.

OUR ROLE:

Sellside Advisor

TRANSACTION DATE:

March 2020