Black-owned Saalex Corporation acquires defense solutions firm for $75 million

BY Preta Peace Namasaba February 1, 2024 7:05 AM EDT
Travis Mack. Photo credit: Travis Mack

Saalex Corporation has acquired Spalding Consulting, a defense solutions firm for $75 million. Saalex, a federal services contractor that provides engineering and information technology services, is a client of the US Department of Defense, municipalities, and small to medium-sized businesses. The strategic acquisition was led by Travis Mack, the company’s founder, Chairman and CEO, marks a growing trend of Black-owned companies expanding through mergers and acquisitions.

“At Saalex, we are continually exploring avenues for inorganic growth to complement our strong proposal capabilities. The acquisition of Spalding Consulting aligns seamlessly with our expansion objectives. It allows us to grow our largest customer base, gain access to additional federal agencies, and enhances our software-development services. This move is a clear testament to our commitment to providing outstanding, authentic support to our customers.” Travis Mack, Chairman and CEO of Saalex Corporation said about the acquisition.

The acquisition is projected to make Saalex a powerful player in the aerospace and defense market. Spalding Consulting is a leading provider of software development, IT, and engineering services to the defense industry with a portfolio of over $450 million in multi-year prime contracts for The Department of Defense. Its addition is expected to grow Saalex’s annual revenues to over $175 million.

Furthermore, Spalding will add more than 430 professionals to Saalex, expanding its employee base to over 1,200 nationwide. The acquisition will provide the company with immediate presence in the East Coast near a key customer at the Naval Air Warfare Center Aircraft Division (NAWCAD) Patuxent River base. The terms state that Spalding will operate as a wholly owned subsidiary of Saalex with its executive leadership remaining in place during the transition.

The recent acquisition demonstrates Saalex’s commitment to investing in solutions that address federal agencies’ most urgent technology and mission challenges. In 2022, the firm purchased Netsimco, an information technology services provider for $30 million. Netsimco brought in over 180 employees across four states, a steady growth rate of 20 percent per year and was vital in Saalex’s long-term growth strategy.

“Over five years of continuous effort! So many competent people and organizations coming together through the ups and downs! Bringing two great companies together, everyone believed in the mission and solidly puts Saalex as a large business middle market federal contractor. I am honored and proud to lead such an amazing company!” Mack expressed his excitedly about the acquisition via LinkedIn.

Mack founded Saalex Corporation in 1999, with the firm growing to generate over $100 million in annual revenues. He is the CEO of Valeo Networks with over 20 million in annual revenue and founder and fund manager of the $50 million Greenwood Self Storage Fund. Mack is giving back to the community through the Mack Foundation which provides scholarships to children and underserved communities.