In recent news, ECS Federal has been acquired by On Assignment. The deal is said to have come to $775 million and brings On Assignment into the federal market. As Roy Kapani, ECS’ majority owner and founder said,
“This is a terrific outcome for our company, partners and talented employees.”
ECS CEO George Wilson said, “Same strategy, same management team, more resources.”
On Assignment has big plans with the acquisition. They will change their name when the deal finishes to be ASGN Inc. They hope that ECS will become a $1 billion platform by the target date of 2021. ECS will now have access to digital, creative and life sciences; while On Assignment will have access to ECS’s development capabilities and cloud, cyber and artificial intelligence.
The acquisition is an interesting example of a commercial company that is turning its attention to the federal market. As investment banker Jean Stack of Baird explained,
“This is illustrative of strong buyer interest in companies with scale and demonstrated growth, with priority national security customers, and in growth markets like cyber, analytics and IT modernization.”