American Systems acquires managed IT, cyber provider
Gettyimages.com / Jordan Lye
By
Ross Wilkers
American Systems adds 400 new employee-owners to its staff via the company's largest-ever acquisition.
American Systems has acquired a provider of managed IT and cybersecurity services to federal agencies in a move aimed at adopting more of a multi-tenant delivery model and broadening the buyer’s geographic footprint.
The purchase of Epsilon also represents the largest transaction in American Systems’ 50-year history and adds approximately 400 new employees, both companies said Monday. Financial terms of the agreement were not disclosed.
Epsilon was founded in 2009 and is headquartered in Weaverville, North Carolina. The company opened its Arlington, Virginia, office nine years later as its federal business and partnership network grew.
Cloud hosting, managed network services and call center support are some of Episilon’s other core service lines in addition to the IT and cyber areas.
Epsilon has recorded approximately $121.4 million in unclassified prime revenue over the trailing 12 months with defense agencies representing 58% of that spend. The Navy specifically takes up the largest share at 39%, according to USASpending.gov data.
With Epsilon in its fold, American Systems also is looking to broaden its expertise in both federal and certain commercial markets.
For the employees of Epsilon, they are poised to become shareholders in American Systems as it is an employee-owned company. American Systems is one of three companies on the 2025 Washington Technology Top 100 rankings that operate under an employee stock ownership plan.
PilieroMazza PLLC and Deep Water Point and Associates advised American Systems on the transaction. KPMG Corporate Finance and Miles & Stockbridge advised Epsilon.