May 28, 2024

Capstone Partners Advised AstreaX on its Sale to DC Capital Partners

Capstone Partners advised AstreaX Inc. and Aura Solutions (collectively AstreaX)—a leading provider of software development and implementation services for government modernization technologies—on its sale to private equity firm DC Capital Partners.

Founded in 2010, AstreaX is a pioneer in developing and implementing software solutions that facilitate government IT modernization and digital identity tool adoption. The company was founded with the mission to serve the DMV market challenged with increasingly aging systems and dependency on legacy vendors and outdated IT infrastructure. AstreaX has assisted the State of Arizona in the development of a modern, cloud-based super portal, delivering secure, improved, and expanded online services for the Arizona Motor Vehicle Division (“AzMVD”). AstreaX provides solutions that effectively digitize highly antiquated DMVs, spanning vehicle title & registration to dealer licensing, finance with integrated super portals. Learn more here.

As a repeat customer of Capstone, we continue to be impressed with their ability to provide comprehensive support and expertise throughout a complex process that is always challenging. Capstone’s ability to understand a business in detail and position the organization in a manner that identifies outstanding potential parties and optimizes their clients value is greatly appreciated. We saw Capstone as more than a business partner and the Capstone team was a pleasure to work with. Without question we continue to recommend Capstone to other peer business owners.

David KniggeCEO, AstreaX

David Knigge continued, “DC Capital is uniquely aligned with our passion and growth strategies at this critical inflection point of AstreaX. This is an exciting time for AstreaX as DC Capital brings a significant amount of resources and expertise in the sector, and we look forward to continuing our vision to build a trustworthy partner providing world class services to our customers as a part of the DC Capital family.”

Ted Polk, Managing Director at Capstone Partners, noted “AstreaX represents the third IT modernization business for government agencies that we have represented over the past three and one-half years. Given the efficiencies and improved services it enables, we expect that there will be continued market interest in such opportunities for the foreseeable future.”

David Brinkley, Managing Director at Capstone Partners, added, “we are exceedingly pleased with the partnership established with this transaction. Strategic investment from DC Capital Into AstreaX will accelerate the adoption of next generation digital technologies to drive citizen engagement not just in the state of Arizona, but across the country and Canada.”

“We are extremely excited to partner with the AstreaX team to provide an expanded offering of IT Modernization Services and Solutions,” commented Thomas J. Campbell, Founder and Managing Partner of DC Capital, “This acquisition marks a significant milestone in our journey to drive innovation and efficiency in the public sector, solidifying our position as a leading provider of technology solutions for government entities.”

DC Capital Partners is a private equity investment firm headquartered in Alexandria, Virginia, focused on making control investments in middle market, U.S.-based, Government Services and Engineering & Consulting Services businesses. Learn more here.

The expert investment banking professionals on Capstone Partners’ Government Information Technology Team work with leading middle market companies operating in the Gov IT market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Government IT Banking Team, contact us here.