McLean Advised Microtel on its Sale to Tyto Athene an Arlington Capital 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.”

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.

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.

The McLean Group, LLC is a 25-year-old boutique investment bank and financial services firm focused on the Defense, Government & Intelligence (DGI), Security, Critical Infrastructure, and Maritime markets. Its team of licensed professionals brings deep industry experience and relentless execution to every client engagement. The McLean Group provides solutions that blend financial creativity with operational expertise. Whether they are providing transaction advisory services, valuation opinions, or growth capital, the Firm’s services are unmatched in these core markets. Learn more at www.McLeanLLC.com.

The McLean Group is a middle-market investment bank that provides objective strategic and financial advice on mergers and acquisitions, business & asset valuation, and growth capital to middle-market clients.