Training tech, IT and space capital market transactions to note
Gettyimages.com / Teera Konakan
By
Ross Wilkers
Fidelity Technology Services gets private equity backing, GCubed Enterprises buys a company and Kapta Space closes a financing round.
Fidelity Technology Services
This provider of military simulation training systems and services has agreed to be acquired by FVLCRUM Funds, a private equity firm that gears its investments toward lower middle-market companies.
Reading, Pennsylvania-headquartered FTS opened for business in 1987 to provide training-related systems and services for the U.S. Defense Department and allied military partners around the world.
FTS is led by CEO Juan Navarro and recorded approximately $160.7 million in unclassified prime contract revenue over the trailing 12 months, according to USASpending.gov data. The Navy represents 97% of those obligations with the remainder from the Army and Air Force.
In being acquired, FTS becomes a part of FVLCRUM’s portfolio that includes Advanced IT Concepts. FVLCRUM purchased FTS amid the firm’s execution of its Project Maverick strategy to back companies in the IT, simulation, services and training fields of defense tech.
Advanced IT and FTS will operate as independent entities for contracting purposes, while also looking to collaborate on opportunities.
GCubed Enterprises
GCubed Enterprises has acquired a fellow provider of IT and cybersecurity services to federal agencies in a move aimed at further building out technical offerings.
RightDirection Technology Solutions was founded in 2007 by CEO Joey Hutchins, a Marine Corps veteran, to work in IT and digital transformation efforts across the federal landscape. RDTS touts secure technology, mission operations, logistics and enterprise support as its core service lines.
RDTS has recorded roughly $11.9 million in unclassified prime contract revenue over the trailing 12 months with Treasury Department work representing 57% of the spend, according to USASpending.gov data. Other key customers include State and Commerce departments.
GCubed’s unclassified prime obligations for the past 12 months have totaled $2.5 million with the Air Force representing 84%.
Rock Hall Partners advised RDTS on the transaction with GCubed.
Kapta Space
This developer of spaceborne radar payloads has collected $24 million in Series A capital from investors to aid in efforts at scaling production after having secured multiple classified contracts this year.
Kapta Space was founded in 2023 by Milton Perque and Adam Bily to design payloads with an electronically steerable radar architecture. This technique combines wide field-of-regard, rapid beam steering and scalable apertures to provide persistent coverage of events across all domains from space.
The company touts its approach as a lower-cost and -power alternative to traditional active electronically scanned array methods used in radar and telecommunications.
Washington Harbour Partners and Bison Ventures co-led the Series A round that also included participants such as MetaVC, MYDA Capital, Entrada Ventures, Aurelia Foundry and Fitz Gate Ventures.
Kapta will use the newfound capital to expand its manufacturing capacity, qualify the hardware for spaceflight and prepare for a first orbital demonstration.