McNally Capital Portfolio Company, Xcelerate Solutions, Merges with VMD Corp

Introduction:

In a strategic move to enhance its security and IT capabilities, Xcelerate Solutions, a leading defense and national security company and portfolio company of McNally Capital, has announced its merger with VMD Corp. The merged entity will go to market as Xcelerate Solutions, offering a comprehensive, mission-first portfolio of secure solutions to the federal government. This merger is seen as a win-win, with both companies sharing similar cultures and a commitment to delivering positive mission outcomes.

The Merger:

Xcelerate Solutions, known for its integrated solutions in enterprise security, strategic consulting, and digital transformation, will join forces with VMD Corp, a cybersecurity, agile engineering, and critical infrastructure protection firm based in Fairfax, Virginia. The merger brings together 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.

Expanding Capabilities:

With this merger, Xcelerate Solutions and VMD Corp aim to leverage the strengths of both companies to provide new solutions and broaden their portfolio. The combined company's expanded capabilities, contracts, and specialized expertise make a powerful statement to the government market. They plan to capitalize on diversification and growth opportunities across defense, law enforcement, national security, civilian agencies, and the federal government.

Mission-First Culture:

Xcelerate Solutions and VMD Corp share a mission-first culture, which will be further fostered through this merger. The companies aim to align their leadership and crystallize their go-to-market portfolio to best serve federal clients in the coming months. This strategic alignment will enable them to deliver even greater value to their clients and strengthen their position in the market.

Partnership with McNally Capital:

The merger between Xcelerate Solutions and VMD Corp is a testament to McNally Capital's partnership and expertise in the Aerospace & Defense industry. McNally Capital's investment in Xcelerate and its efforts in expanding security and IT capabilities through M&A played a crucial role in making this merger possible. McNally Capital is excited about the combined growth journey with VMD and looks forward to working together to build and scale an industry-leading platform.

Future Growth and Value Creation:

The merger between Xcelerate Solutions and VMD Corp aligns with McNally Capital's investment thesis in intelligence and national security. By capitalizing on McNally's expertise in implementing digital, technology-enabled, and transformative solutions, this merger accelerates the business's growth trajectory. It allows the companies to modernize historically analog problems and create value for investors.

Legal Counsel and Partnerships:

Ropes & Gray LLP served as legal counsel for this transaction, securing a seamless merger process. Nelson Mullins provided legal counsel on behalf of VMD. These partnerships play a crucial role in ensuring a smooth transition and setting a solid foundation for the merged company's future growth.

About McNally Capital:

McNally Capital is a private equity firm based in Chicago, Illinois. The firm specializes in acquiring lower middle-market businesses in industries such as Aerospace & Defense/National Security, Industrial Products & Services, and Business Services. McNally Capital brings its hands-on experience, institutional capabilities, and proprietary value creation framework to its portfolio companies. The firm aims to benefit management teams in their next phase of growth and build value for its investors.

About Xcelerate Solutions:

Xcelerate Solutions is a leading defense and national security company that provides integrated solutions in enterprise security, strategic consulting, and digital transformation. The company enhances the security and resilience of America's personnel, physical, and cyber infrastructure. Xcelerate Solutions is a trusted partner to Federal Law Enforcement, the Department of Defense, and Intelligence Community agencies responsible for the security and safety of the United States.

About VMD Corp:

VMD Corp is a vision and mission-driven company that delivers information technology solutions to the Federal government. Since 2002, VMD Corp has been providing agile engineering, cybersecurity, and critical infrastructure protection services. The company's expertise and focus on delivering solutions to the government make it an ideal partner for Xcelerate Solutions in its mission-first approach.

Conclusion:

The merger between Xcelerate Solutions and VMD Corp marks an important milestone in the companies' growth journey. By combining their strengths and expertise, they are poised to deliver comprehensive, mission-first solutions to the federal government. This strategic move aligns with McNally Capital's investment thesis and showcases their ability to create value through transformative solutions. The future looks promising for Xcelerate Solutions and VMD Corp as they embark on a path of growth and innovation in the defense and national security industry.