Potomac Tech Wire - Sept. 26

FBI Raids Reston Headquarters of Carahsoft; German software firm SAP Also Being Probed

o FBI Raids Reston Headquarters of Carahsoft
o Rockville-based DealerOn Acquires Seattle-based Sincro
o Activation Capital Launches Pre-Accelerator Program
o TECfusions Completes Third Phase of Clarksville Data Center
o 3Pillar Announces New Innovation Hub in India
o Briefly Noted: FranConnect, Raft, Harmonia Holdings, REI Systems

FBI Raids Reston Headquarters of Carahsoft; German software firm SAP Also Being Probed

Reston, Va. – The FBI raided the headquarters of Reston-based government IT vendor Carahsoft on Tuesday, according to several media outlets. Bloomberg reported that the raid was part of a probe looking at the possible overcharging of the federal government by contractors, including the German software firm SAP and other firms.

Since at least 2022, Justice Department lawyers have been looking at whether SAP — which makes accounting, human resources, supply chain and other business software used across the globe – illegally conspired with Carahsoft to fix prices on sales to the US military and other parts of the government, according to federal court records filed in Baltimore.

The civil investigation, which hasn’t previously been reported, poses a legal risk to a top technology vendor to the US government and to Germany’s most valuable company as its shares are soaring.

The review also shines an even greater light on Carahsoft, a large software vendor whose offices in Virginia were raided on Tuesday by FBI agents and military investigators

Rockville-based DealerOn Acquires Seattle-based Sincro

Rockville, Md. – DealerOn, a Rockville-based provider of a technology platform for auto dealerships, announced that it has acquired Seattle-based Sincro, a digital marketing firm aimed for auto dealerships, from St. Louis-based Ansira. The purchase price was not disclosed. DealerOn said the acquisition will allow it to provide more digital tools in the areas of websites, vehicle inventory management, advertising and SEO. “As part of the DealerOn brand, Sincro will continue providing customers with the dedicated service they have come to expect, while leveraging DealerOn's state-of-the-art technology platform to deliver a more comprehensive set of sales and marketing tools to drive success for dealers,” said Paul Tibbitt, CEO of Ansira.

Richmond-Based Activation Capital Launches Pre-Accelerator Program

Richmond, Va. – Activation Capital, a Richmond-based economic development organization that operates the Virginia Bio+Tech Park, said it has launched a new program designed to boost early-stage biotech and life science entrepreneurs. The “Start-the-Journey” program will use content provided by Fat Robin Consulting to support founders as they prepare to expand Central Virginia startups. The free cohorts will operate on a rolling model, starting monthly from October 2024 through January 2025, and focus on topics such as deep-tech biotechnology, pharmaceuticals, medical devices and diagnostics.

TECfusions Completes Third Phase of Clarksville Data Center

Clarksville, Va. – TECfusions, a Florida-based data center company, said it has completed the third phase of its Clarksville, Va. facility. The company acquired the Mecklenburg County site with 500kW of customer power load already live, then began its construction in October 2023, expanding it to 6 MW by the end of December. TECfusions said it plans to start construction on the site’s fourth phase later this month, adding another 13.5 MW to the facility.

3Pillar Announces New Innovation Hub to Drive Market-Leading Digital

Fairfax, Va. – 3Pillar, a Fairfax-based provider of application strategy, design and engineering services, said it plans to build a new innovation hub in India, aimed at expanding its presence at the intersection of product engineering and cognitive computing. Pankaj Chawla, the company’s chief innovation officer, will relocate to India to lead the organization, which will be based in Noida. Chawla said he plans to work extensively with the company’s teams in India and Eastern Europe.

Briefly Noted:

(Herndon, Va.) Herndon-based FranConnect, a provider of sales, operations and marketing offerings for franchises and multi-location businesses, has named Lisa Maynard as its chief customer officer. Maynard most recently led the customer success organization at Prove, and earlier was the chief customer officer at ID.me.

(McLean, Va.) McLean-based Raft, a government technology firm focused on software, data and AI tools, has named William Bal as its senior vice president of growth. Most recently, Bal served as the vice president of strategy and growth at Omni Federal.

(McLean, Va.) McLean-based Harmonia Holdings, a provider of data technology to the federalgovernment, has named Darla Moon as its CFO, a newly created role for the company. Moon most recently served as the CFO of Aretum, and earlier held key roles at Patriot Group International (PGI), ManTech and Northrop Grumman.

(Sterling, Va.) Sterling-based REI Systems, a provider of technology services to government clients, has named Mark Olson as its CFO. Olson previously held senior leadership positions at Peraton, overseeing the operations of multiple federal business units.