July 19th 2023.
Black-owned investment firm IMB Partners has recently made a strategic investment in eTelligent Group. This marks IMB's second deal in the GovCon space, with their first being the purchase of IT consulting firm Ashburn Consulting back in August 2020.
The Woodcliff Lake, New Jersey-based e-Tel provides technology solutions to the U.S. government, primarily digital transformation services to the Internal Revenue Service. IMB's focus is to build large minority business enterprise companies via acquisition and partnership, and this new deal will help cement their position in the GovCon sector.
The GovCon sector is the market of people and businesses with contracts with the United States on a federal, state, or local government level to handle work or provide goods and services to those agencies. This sector reportedly exceeds $1 trillion on the federal level.
IMB Partners, which was set up in 2010, is a private equity sponsor focused on investing and partnering with management teams to grow lower middle market companies serving government agencies and electric and gas utilities. The firm seeks platform investment targets between $10 million to $250 million in revenue. In February 2023, they reported having over $1 billion in revenue in their portfolio of investments.
This latest deal fits IMB's long-term growth strategy, as they plan to lean into both organic and acquisitive growth for e-Tel. According to a spokesperson from IMB, there is a lot of room to build on this platform with add-on investments because eTel already has a very strong core.
Norman Yu, director at IMB Partners, had this to say about the deal: "The eTel team has laid some very impressive groundwork, and IMB sees a great opportunity to grow, diversify, and strengthen the business both inside and outside of the IRS."
Ritesh Bansal and Rohit Aggarwal, managing partners of eTel, added: "Over the past 18 years, we have built a high-performing team of industry-leading professionals that are committed to our core company values of serving with excellence. And now, with this partnership with IMB, we will have the means to extend the same exceptional service to more customers across new categories and invest significantly in building our strategic and operational framework."
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