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2014 Year in Review
Industry One on One
(Defense and Government Services)
The McLean Group posed questions to William
Van Vleet, CEO of Haystax Technology, a
portfolio company of The Edgewater Funds.
Mr. Van Vleet has more than 30 years of experience in defense
and commercial technology markets, most recently as the
President and CEO of Applied Signal Technology, a public
defense technology company providing advanced intelligence,
surveillance and reconnaissance solutions, and Dynamics
Technology, a provider of integrated sensor and signal
processing services. In both cases, he demonstrated a track
record of generating superior growth for company
shareholders.
Prior to serving as the CEO of two technology companies, Mr.
Van Vleet had a 22-year career with The Boeing Company
where he led a division addressing the intelligence community
with programs in communications, maritime surveillance and
information warfare systems. He also served as President of
the Boeing subsidiary ARGOSystems, Inc., consolidating and
integrating the acquisition.
Mr. Van Vleet has a degree in electrical engineering from
Marquette University, a master’s degree in electrical
engineering from University of Southern California and is a
member of the Armed Forces Communications and Electronics
Association, the National Defense Industrial Association and
the National Association of Corporate Directors.
How do you foresee M&A priorities in the government contracting
space evolving over the next year?
We are beginning to see an inflection point enabling the emergence of a
new class of mid-market providers that provide innovation, demonstrate
agility and leverage a deep knowledge of customer missions. We believe
that this is a flashpoint for businesses of our size and ability to increase
market share in a market that has long been dominated by larger, less
agile providers. Our focus and priority for the near future is to deliver
innovative technology solutions at the intersection of cybersecurity,
analytics and mobility that enable us to scale the business to compete at
the mid-cap level. For example, our recent acquisition of NetCentrics
deepens our product and service capabilities by enhancing cybersecurity
and network management offerings.
As an acquirer, what are you specifically looking for in a potential
target company?
We look for well-run companies with a strong record of revenue and
earnings and a growing business backlog. Typically it also includes
management teams/owners that have successfully built a company and
are looking for partners to extend their growth and take the company to
the next level. This is common for companies that have successfully
transitioned from traditional small-business thresholds and seek ways to
compete more effectively with other large businesses. We also look for
synergies in business opportunities that provide access to a broader set
of customers and markets. Of course, all potential acquisitions must fit
within our unifying strategy to create a pure-play cyber-analytics
company.
Can you tell us more about Haystax’ relationship with Edgewater
and how they plan to support your M&A strategy?
We partnered with The Edgewater Funds in 2012 to build our company. It
is a great combination leveraging our knowledge of technology markets
and their access to capital. Edgewater also assists our leadership team
in vetting new deals to ensure we are identifying companies and
opportunities that support our long-term, accelerated growth plan.