Potomac Tech Wire - Sept. 7
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o Appian Locks-In Nearly $500 Million from Pegasystems Lawsuit
o 3Pillar Global Acquires Chenoa Information Services
o J.P. Morgan Makes Strategic Investment in DC-based Dcode Capital
o Rockville-based Dataprise Expands in NYC Market With Acquisition
o SECAF Names Officers, Board for 2023-2024 Programming Year
o Ken Eisner Joins Good Harbor Partners; Opening DC Office
o Maryland Innovation Initiative (MII) Invests in Three Pilot Programs
o Arlington-Based Sands Capital Co-Leads $300 MM Round for Ramp
o Richmond-Based ASGN Bolsters Financial Flexibility
o Briefly Noted: ARG - Jason Hart, Kion, U.S. Small Business Administration - Investment Capital Advisory Committee
o Appian Locks-In Nearly $500 Million from Pegasystems Lawsuit
Tysons, Va. – Appian, the business software company based in Tysons, has locked in nearly $500 million in gains through an insurance deal that backstops its award from a lawsuit against Pegasystems for trade secret misappropriation. Pegasystems has been appealing a $2.1 billion award to Appian. In an SEC filing on Thurday, Appian reported that it has bought a $500 million “judgement insurance policy” at a cost of $57.3 million that will guarantee the company a payment of up to $500 million, regarless of what happens to the current judgement of $2.1 billion in the appeals process. Appian, which saw its share price up 4% in mid-day trading, said the insurance policy was backed by a group of highly-rated insurers. In essence, the insurers believe that Appian will likely eventually collect a substantial amount on its $2.1 billion judgement that is still being litigated. If Appian ends up receiving more than $500 million from Pegasystems, the insurers will net $57.3 million.
“We are pleased to have obtained judgment preservation insurance with respect to the $2.1 billion Pega judgment for willful and malicious trade secret appropriation,” said Matt Calkins, founder and CEO of Appian, in the filing. “It secures a significant floor amount of recovery for Appian’s shareholders.”
“We believe that the jury’s verdict and the court’s legal rulings are supported by what the judge called ‘overwhelming’ evidence and sound legal reasoning and that the full $2.1 billion judgment should be upheld on appeal,” said Christopher Winters, general counsel of Appian.
o 3Pillar Global Acquires Chenoa Information Services
Fairfax, Va. – 3Pillar Global, the Fairfax-based digital product development firm, announced that it has acquired New Jersey-based Chenoa Information Services, a digital engineering firm with a large workforce in India. Financial terms of the deal were not disclosed. Chenoa, with over 425 employees, has expertise in the financial services sector.
“Over the past several years, 3Pillar has very intentionally executed against a growth agenda that expands our capability set, industry expertise and Global Delivery Network,” said Michael Detwiler, CEO at 3Pillar. “The acquisition of Chenoa enables us to capitalize on the fast-growing market demand for low-code and no-code rapid software development.”
o J.P. Morgan Makes Strategic Investment in DC-based Dcode Capital
Washington, DC – Dcode Capital, the DC-based women-led venture capital firm, announced that it has received a strategic investment from J.P. Morgan Asset Management’s Project Spark. The amount of the investment was not disclosed. Project Spark is a J.P. Morgan program aimed at supporting underrepresented managers and companies. Dcode Capital – founded by managing partners Rebecca Gevalt, Meagan Metzger, and Meg Vorland – focuses on investments in growth-stage B2B technology companies.
"Despite increasing dialogue across the alternative investment industry on the need for more diverse managers, there is clearly still a long way to go, which is why we are committed to making a difference by providing capital to diverse emerging managers through Project Spark," said Jamie Kramer, head of J.P. Morgan Asset Management's Alternatives Solutions Group and the chair of the Project Spark Investment Committee. “The women behind Dcode Capital bring their unique experience and perspective to the intersection of venture capital and the federal government.”
o Rockville-based Dataprise Expands in New York Market With Acquisition
Rockville, Md. – In a move that will expand its presence in New York City, Dataprise, a Rockville-based managed IT firm, has acquired New York-based Cohere, a managed services firm. Cohere has over 150 clients – many in the financial services industry – that will now be managed by Dataprise. "Businesses in finance and highly regulated industries need an IT partner that delivers a complete portfolio of technology solutions that scale, secure, and fully support their users," said Steve Francesco, chairman and CEO of Cohere. "The Cohere team is thrilled to join Dataprise and continue our mission of delivering premier security and infrastructure services that holistically protect our clients.”
o SECAF Names Officers, Board for 2023-2024 Programming Year
Falls Church, Va. – The Small and Emerging Contractors Advisory Forum (SECAF) has named its board of directors for the 2023-2024 programming year. Steve James has been named chair, with Adam Nall named vice chair. The full list of officers and board members is listed below:
Chair: Steve James, Integrated Systems Solutions, President and CEO
Vice Chair: Adam Nalls, Virginia Partners Bank, Chief Operating Officer
Treasurer: Brigitta Scott, CORDIA, Partner
Secretary: Kathryn Freeland, A-TEK, CEO
General Counsel: Jon Williams, PilieroMazza, Partner
Aland Acuna, Acuna Consulting, President and CEO
Chris Crowder, Unanet, Regional Vice President
Meghan Gifford, Octo, Vice President of Corporate Dev & Strategy
David Harris, Advanced Decision Vectors, LLC, Chief Executive Officer
Kevin Hodges, Watermark Risk Management, Owner and President
Chuck LaRock, Jones Lang LaSalle, Sr Vice President, Brokerage Division
Jeff Mujsce, Chief Growth Officer at BryceTech
Jack Moore, Evans Consulting, Managing Partner
Richard Pineda, CALIBRE, President and CEO
Vinny Raj, Digilent Consulting, Founder and Managing Director
Frank Sturek, Compendium Federal Technology, CEO
Kahni Ward-Uzzell, CEO of Flexwind
Eric Vendt, Whiteford, Taylor & Preston LLP, Partner
o Ken Eisner Joins Good Harbor Partners; Opening DC Office
Boston – Good Harbor Partners, a Boston-based mergers and acquisitions and outsourced corporate development firm, has named local technology executive Ken Eisner as a partner. He will also open the firm’s DC area office. Eisner worked for over a decade at Amazon, where he founded AWS Educate and helped drive many of the company’s educational offerings. Good Harbor Partners has a strong focus on the education and learning sectors.
o Maryland Innovation Initiative (MII) Invests in Three Pilot Programs
Columbia, Md. – The Maryland Technology Development Corp. (TEDCO) said it has invested nearly $330,000 in funding toward a trio of university entrepreneurship programs through its Maryland Innovation Initiative (MII). The pilot programs, at Bowie State University and Frostburg State University, are designed to help foster the transition of promising technologies to the commercial sector. The MII launched in 2012 as a partnership between the State of Maryland and five Maryland academic research institutions.
o Arlington-Based Sands Capital Co-Leads $300 Million Round for Ramp
Arlington, Va. – Sands Capital, an Arlington-based investment firm, said it has co-led a new $300 million round of funding for New York-based Ramp, the developer of a finance automation platform designed to help businesses spend less. Thrive Capital also co-led the company’s fourth round, which Ramp will use to pursue “ambitious” growth plans, including significant hiring over the coming months.
o Richmond-Based ASGN Bolsters Financial Flexibility with Series of Moves
Richmond, Va. – Looking to strengthen its liquidity and bolster its financial flexibility, Richmond-based ASGN, a provider of IT consulting and staffing services, said it has completed a series of transactions that extend the maturities of its revolving credit facility and term loan. Under one deal, ASGN refinanced its existing $460 million, five-year facility, with a new five-year, $500 million facility. The maturity has been extended to 2028. It also refinanced its secured $500 million term loan B with the issuance of a new $500 million, seven-year term loan maturing in 2030.
Briefly Noted:
(McLean, Va.) McLean-based IT consulting firm ARG has named Jason Hart as a managing partner. Hart previously served as partner experience manager for the Mid-Atlantic region at cloud services provider RapidScale, and earlier spent more than a decade at CDW.
(Columbia, Md.) Columbia-based Kion, the developer of a platform designed to help users simplify cloud management and governance activities, has named Justin Bartinoski as its senior vice president of marketing. Bartinoski previously served as the vice president of marketing at Trilio.
(Washington, DC) The U.S. Small Business Administration (SBA) has appointed 14 members to its newly established federal Investment Capital Advisory Committee (ICAC). The committee aims to increase access to investment capital for small businesses and startups from traditionally underserved communities. A complete list of the appointees is available by clicking here.