CIS Secure Computing, Inc.
In June 2012, Bluestone purchased a controlling interest in CIS Secure Computing, Inc. ("CIS" or the "Company"), a leading provider of secure communications equipment and computing solutions for a wide range of U.S. government customers headquartered in Dulles, Virginia. Bluestone's acquisition provided CIS' entrepreneurial principals significant upfront value as well as additional upside through retained equity.
The Bluestone team worked with CIS to transform the Company's infrastructure and position it for scalable growth. Over Bluestone's ownership period, the Company enhanced the depth of its leadership team, increased operational efficiency, implemented a quality program designed to enhance product reliability, and refocused sales efforts around customer relationships. Additionally, Bluestone made significant investments, in product development, government testing, and marketing, to strengthen the Company's position as the premier provider of secure communications products. Over time these changes resulted in a near doubling of revenue and significant increases to profitability.
The efforts of Bluestone and management were validated in September of 2017 with the sale of the company to Acorn Growth Companies. The sale of the business provided an excellent return for Bluestone's investors and generated significant additional value for the remaining management owners.
gap solutions, inc.
Bluestone partnered with two industry executives to acquire GAP Solutions Inc. (“Gap Solutions” or the “Company”) from it's departing founders in September, 2013. GAP Solutions, established in 1999 and headquartered in Northern Virginia, was a graduate of the 8(a) program and had a significant backlog of small business contracts. The Company provided human capital, staffing, and professional services to Federal clients including the Departments of State, Defense, Health and Human Services, and Homeland Security, among others.
Bluestone, together with management, implemented a number of strategic initiatives to enhance the value of the business, both for investors and the existing management team. The Company defined management performance plans and instituted an equity option plan to align objectives for all stakeholders and to ensure transparent communication of goals. GAP established new financial processes to optimize the balance sheet and freed up capital to deploy in a re-engineered business development framework. The Company also added resources to accelerate growth and facilitate the transition of existing set-aside contracts.
Within eighteen months the GAP Solutions experienced growth in every customer account and over the investment period was able to double profitability and triple contract backlog. GAP Solutions performance led to interest from multiple private equity firms and strategic acquirers. In December 2017, the Company was acquired by System One Holdings, one of the nation's twenty-five largest staffing and workforce solutions companies. System One is a portfolio company of Thomas H. Lee Partners. The outcome provided positive returns for investors as well as significant wealth creation for the Company’s leadership team.
omniplex world services Corporation
Bluestone was a minority investor alongside Altamont Capital Partners, a $2.0 billion private equity firm based in Palo Alto, California, in the acquisition of OMNIPLEX World Services in December 2012. OMNIPLEX is a leading provider of physical security, background investigation, and risk management services to federal government customers, primarily within highly classified environments.
Altamont valued Bluestone's industry expertise and access to proven industry executives given that OMNIPLEX was Altamont's first investment in the government services sector. Bluestone was included as an active participant in Board meetings and facilitated introductions resulting in the hiring of several key senior executives.
OMNIPLEX's transformation enabled the Company to have a successful sale in August 2017 to Constellis Group, Inc., a global security and operational support business serving a wide range of government customers. Constellis is a portfolio company of Apollo Global Management.