The McLean Group Advises Microtel LLC. on its sale to Tyto Athene an Arlington Capital Portfolio Company
McLean, VA, April 8, 2024 – The McLean Group is pleased to announce that it provided Sell-Side merger and acquisitions support services to Microtel on its acquisition by Tyto Athene, LLC (“Tyto”), a federal systems integrator of mission-focused digital transformation solutions. Microtel LLC (“Microtel” or the “Company”) is a software development and systems engineering firm deeply embedded in long-term space missions for NASA and international space programs. Tyto is a portfolio company of Arlington Capital Partners (“Arlington”), a Washington, D.C.-area private investment firm specializing in government-regulated industries. Financial terms of this engagement have not been announced.
Tyto is an innovator in Space Domain Awareness and Combat Power with expertise in Space Threat Intelligence Analysis and Modeling and Simulation. The acquisition of Microtel further strengthens Tyto’s longstanding customer relationships and capabilities across the space domain, as the Company’s key software development specialties include mission-critical flight software to control robotic spacecraft, rovers, and other onboard flight applications for command, telemetry, and science data processing.
Michael Lustbader, a Managing Partner at Arlington, said, “For nearly three decades, Microtel has been a proven leader in software development for space programs and this expertise complements our existing space command work. This acquisition underscores Tyto’s commitment to delivering exceptional solutions and expanding its presence in critical markets, including its relationship with NASA. We look forward to supporting Dennis as he drives the integration and advances Tyto’s growth.”
“I am very pleased to welcome Microtel to the Tyto family,” said Dennis Kelly, CEO of Tyto. “Microtel’s impressive team of professionals are hands-on technologists with deep expertise in software development and AI/ML technologies. We look forward to leveraging our combined capabilities to further our growth and bring new innovations to our customer’s mission.”
“Our shared vision of innovation will allow us to explore other mission areas we can support” said Jerry Hengemihle, CEO of Microtel. “We are excited for our future with Tyto, and we look forward to delivering next-generation solutions that expand our support to NASA and other federal agencies.”
About Tyto Athene
Headquartered in Herndon, Virginia, Tyto Athene harnesses the power of technology to provide solutions that shape the future. With over 60 years of experience providing mission-focused digital transformation and nine offices across the U.S., our team of experts connects people with technologies to seamlessly integrate and modernize enterprise-level operations that increase mission resiliency, capability, and flexibility for U.S. defense, national security, intelligence, space, and public safety agencies around the globe. Tyto’s deep understanding of the customer’s mission brings proven results. For more information, visit www.gotyto.com.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-area private investment firm specializing in government regulated industries. The firm partners with founders and management teams to build strategically important businesses in the government services and technology, aerospace and defense, and healthcare sectors. Since its inception in 1999, Arlington has invested in over 150 companies and is currently investing out of its $3.8 billion Fund VI. For more information, visit Arlington’s website at www.arlingtoncap.com.
About The McLean Group
For over 30 years, The McLean Group has been providing investment banking and financial services offerings focused on the Defense, Government & Intelligence (DGI), Security, Critical Infrastructure, Maritime, Facility Services, Unmanned Systems, and Public Safety markets. Our 60+ professionals bring deep industry experience and relentless execution to every client engagement. We provide solutions that blend financial creativity with operational expertise. Whether we are providing transaction advisory, valuation opinions, or growth capital, our services are unmatched in these core markets. Learn more at www.McLeanLLC.com.
RECENT NEWS
Fairness Opinions: Protecting Boards and Shareholders in M&A
As we approach the end of the year, many companies are finalizing strategic decisions, closing transactions, and preparing for what’s ahead. For directors and executives, this often means heightened scrutiny around governance and shareholder protection. Beyond negotiating terms and aligning on strategy, boards must also demonstrate that they acted in the best interests of shareholders. One tool has become increasingly important in this process: the fairness opinion. […]
Monthly Middle Market M&A Insider Report (August 2025)
The McLean Group’s August 2025 M&A Insider Report highlights a month of dynamic transaction activity across defense, government, technology, and infrastructure sectors. Notable deals include acquisitions in ISR software, EO/IR satellite payloads, offensive cyber, aerospace components, and laser systems — underscoring strong buyer demand for mission-critical technologies and advanced manufacturing. Valuation multiples remain robust, driven by continued interest from strategic and financial sponsors seeking growth in high-priority national security and infrastructure markets. This report provides executives with a clear view of how current deal flow, sector dynamics, and valuation trends are shaping opportunities for both acquirers and sellers. […]
McLean advised South Central Water Company in its transaction with H2O America
The McLean Group advised South Central Water Company on the divestiture of its Cibolo Valley wastewater treatment plant and related assets to H2O America’s Texas Water Company. The transaction will expand TWC’s footprint in the Texas Hill Country by adding over 1,500 new wastewater connections, with more than 250 additional connections under contract. This acquisition strengthens TWC’s service area and provides customers with increased efficiency and enhanced customer experience solutions. […]