WASHINGTON–(BUSINESS WIRE)–Arlington Capital Partners (“Arlington Capital”), a Washington, DC-based private equity firm, today announced it has agreed to sell Octo (the “Company”) to IBM (NYSE: IBM). Octo, headquartered in Reston, VA, is a pure-play digital modernization solutions provider to the federal government.

Michael Lustbader, a Managing Partner at Arlington Capital, said “Since our partnership with Octo began in early 2019, the Company has consummated four highly complementary acquisitions, expanding the Company’s healthcare footprint, while also doubling down on its strong positioning with forward-leaning modernization customers within the national security and civilian customer communities. The partnership with the Octo management team and their tireless efforts enabled us to build a great business focused on the infusion of modern technology into government applications and solidified the Company as an attractive workplace for technologists.”

Mehul Sanghani, Founder & CEO of Octo, said “Octo was founded in 2006 with the singular belief and vision of creating a company that was laser-focused on transforming government missions with technology and building the type of culture that attracted high-end technologists who were passionate about that same vision. Our partnership with Arlington Capital has afforded us the opportunity to scale that vision at an unsurpassed pace. We have created an organization focused on digital transformation with modernization missions at scale ranging from public healthcare, to national security, to intelligence & defense. Octo’s combination with IBM affords our clients and our nearly 1,500 employees the unique opportunity to expand and accelerate that vision – with the global reach of one of the world’s pre-eminent brands and largest technology firms.”

Ben Ramundo, Vice President at Arlington Capital, said “Over the last three years, Octo significantly increased its R&D and capital spending, leading to the development of new proprietary solutions, integration of code from acquired entities, and the establishment of its flagship oLabs development center. These endeavors paved the way for Octo to achieve strong annual organic growth and have positioned the Company for further success. We can think of no better steward than IBM to build upon those achievements.”

The transaction is expected to close by the end of the calendar year, subject to customary closing conditions and regulatory approvals.

About Arlington Capital Partners

Arlington Capital Partners is a Washington, DC-based private equity firm with approximately $7 billion of assets under management via six investment funds. Arlington is focused on middle market investment opportunities in growth industries including government services and technology, aerospace & defense, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their Company’s position as leading competitors in their field.

Visit www.arlingtoncap.com for more details.

About Octo

Octo is a technology firm dedicated to solving the Federal Government’s most complex challenges, enabling agencies to jump the technology curve. We don’t just modernize. We create lasting change through best practices that help agencies implement and integrate at-scale next-generation technology and innovation. With a mission and service first mentality, we provide Agile, DevSecOps, Artificial Intelligence, Cybersecurity, Blockchain, Cloud, Open Source, and Data Science solutions, collaborating to solve customers’ pressing problems. Headquartered in Reston, Virginia, Octo delivers proven technology vital to the intelligence community and health care, defense, national security, and civilian agencies that directly impact our nation.

Visit https://www.octo.us/ for more details.


Michael Lustbader and Ben Ramundo

Arlington Capital Partners

5425 Wisconsin Avenue, Suite 200

Chevy Chase, MD 20815