July 18, 2024

Madison Dearborn Partners Announce Sale of LinQuest to KBR

Madison Dearborn Partners (“MDP”) today announced that it has signed a definitive agreement to sell LinQuest (“the Company”), a leader in National Security space systems and technology solutions for the defense and intelligence communities, to KBR (NYSE: KBR). KBR, a leading provider of science, technology and engineering solutions to governments and companies around the world, will acquire LinQuest in an all-cash transaction that is expected to be completed by the fourth quarter of 2024, pending regulatory approval and other customary closing conditions.

“The MDP team recognized LinQuest’s differentiation and significant potential ahead of the transformative trends in our core missions that are reshaping the U.S. defense and intelligence communities, and I would like to thank Matt, Brandon and the entire MDP team for their vision, partnership, expertise and support over the past six years,” said Greg Young, LinQuest President and CEO. “With MDP’s assistance, LinQuest has grown exponentially, nearly tripling our headcount and quadrupling our EBITDA while expanding our solutions offerings to better meet the complex and evolving needs of our customers. I could not be more proud of our incredible team and partnership with MDP. We are excited about joining KBR and believe our future home’s expansive network and government technology expertise will further accelerate our strong momentum across our core markets and enable our defense and intelligence community customers to achieve their missions and safeguard our country.”

A National Security space leader and pioneer, LinQuest has a 50-year legacy of enabling space as a U.S. National Security domain, enhancing interconnected battlespace operations and space-based military technologies, and accelerating the digital advancement and integration of cutting-edge space capabilities. Seeking to meet the most challenging demands across the U.S. federal government’s Space, Air Dominance, and Connected Battlespace missions, LinQuest drives innovation into the U.S. National Security community through its digital engineering & integration, advanced analytics, and electronic warfare solutions and capabilities. Funds affiliated with MDP acquired LinQuest in 2018 and the MDP team implemented its National Security space investment strategy to help LinQuest become a market leader in advanced analytics, engineering, technology development, and operational solutions in space and other mission critical domains.

Matt Norton, Managing Director and Head of MDP’s Technology & Government team, added: “I’m tremendously proud of all we accomplished in close partnership with Greg and the entire LinQuest team. We were incredibly excited about LinQuest’s potential back in 2018 when we originally partnered with Founder/CEO Leon Biederman, Greg Young and the rest of the LinQuest team. Today, LinQuest has grown into a scaled mission critical technology provider, and the combination of LinQuest’s market leadership and MDP’s National Security space investment strategy and broad network of advisors helped meaningfully move the needle on mission-critical technologies across the Defense and Intelligence communities. This investment is a testament to the immense potential we see in partnering with founders, not just to support and accelerate the growth of their businesses, but also to play a role in addressing the crucial need for modernization across the U.S. National Security system.”

Mr. Norton continued: “I would also like to thank Doug Loverro, former Deputy Assistant Secretary of Defense for Space Policy and Associate Administrator for Human Exploration and Operations for NASA. Doug is our trusted partner across all of our National Security space related investments and has served as Chair of LinQuest’s strategy committee and has been a Board member since we invested in 2018.”

As the U.S. federal government continues to prioritize the modernization of critical mission systems, LinQuest is pioneering digital mission integration for next-generation systems and capabilities, providing technical expertise and innovation that enhance the nation’s strategic advantage for great power competition. With more than $850 million in contract awards over the past year, LinQuest has significant growth momentum and multiple avenues for additional growth in the future, including a robust new business pipeline.

Brandon Levitan, a Director on MDP’s Technology & Government team, added, “LinQuest is strategically aligned with the largest, fastest-growing mission priorities across the U.S. Space Force, Department of Defense, Intelligence community, and civil and international space customers, and we know LinQuest will continue to thrive and serve its customers well as part of KBR. It was incredibly rewarding to partner with Greg and the entire LinQuest team over the last six years, and we know that they will continue driving innovation across the DoD and IC for years to come.”

Baird is serving as financial advisor to MDP and LinQuest and Kirkland & Ellis LLP and Crowell & Moring LLP are providing legal counsel.