Edgewater Sells IT Solutions to Snow Phipps Group

Edgewater Growth Capital Partners II, L.P. announced that they have completed the sale of its portfolio company ITS Holding Company (“ITSolutions”) to Snow Phipps Group, LLC, a New York-based private equity firm. Mr. Stefan Lalos, Co-Founder and CEO of ITSolutions, as well as current and former employees participated with Snow Phipps in the acquisition. Mr. Lalos will continue to lead the company as CEO.

ITSolutions, headquartered in Silver Spring, Maryland, is a leading information technology services provider to U.S. government civilian, national security, and intelligence agencies. ITSolutions provides infrastructure operations, network engineering and architecture, information assurance, specialized relocation and engineering, program management, software development, and strategic planning to its customers with a focus on end-to-end IT solutions and complementary consulting services.

“We have enjoyed a terrific relationship with Edgewater and look forward to partnering with Snow Phipps in the next phase of our development,” said Mr. Lalos. “We are delighted to share our vision and build our business with the support of Snow Phipps. We look forward to the strategic guidance they will provide to take advantage of the opportunities for both organic and acquisition oriented growth.”

“Our partnership with the IT Solutions team has been a tremendous success for everyone involved,” said Jeff Frient, partner with Edgewater Growth Capital Partners. “Since our initial investment in December 2005, we have worked closely with management to complete two strategic acquisitions and significantly expand the company’s customer base. During this time, IT Solutions has increased in size over three-fold and they have built an outstanding reputation in their industry.”

“Stefan Lalos and his team have built a company that is differentiated by its superior customer service and its strategic market positions,” said Leif Soderberg, Snow Phipps Operating Partner. “We have worked diligently to identify the right investment opportunity in the federal IT services marketplace and believe that our partnership with Stefan and Leif will result in the future growth and continued success of ITSolutions,” added Snow Phipps Investment Partner Sean Epps.

BB&T Capital Markets | Windsor Group acted as the exclusive financial advisor to ITSolutions.

About ITSolutions, LLC

Established in October 2001, Interactive Technology Solutions (ITSolutions) is a privately held management and information technology consulting company. ITSolutions employs over 500 professionals located in the Washington, DC metropolitan area. ITSolutions has consulted with over 19 government agencies and private companies by providing customers with expertise and solutions in the areas of program and project management, strategic planning, infrastructure operations, call center consulting, and network engineering and operations.

About Snow Phipps Group, LLC

Snow Phipps is a New York-based private equity firm founded by Ian Snow and Ogden Phipps that seeks to acquire middle market businesses in attractive industries by leveraging the expertise of exclusive Operating Partners who are seasoned industry executives.