AT&T’s Government Services, Inc. Acquired By Tyto Athene

The United States government’s defense sector faces a tumultuous future—one rife with ever-evolving online information systems, invasive cybercrime, and outdated solutions for those problems. IT service management providers eager to sign a contract might make the mistake of believing this overhaul will be like any other business. Handling the DoD’s complex IT network requires the full attention of a real IT power player, or maybe two.

Tyto Athene, a systems integrator that’s been in-demand for its “solution pillars” and wide-ranging services, plans to absorb the divested assets of AT&T’s government division to expand its platform. The sum of these parts will form a one-line business model driven by IT innovation.

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The genesis of Tyto Athene dates back to 2018, when PE firm Arlington Capital Partners took control of the government solutions branch of parent company Black Box Corporation for $75 million. A year later, Tyto acquired Island Information Technology Consultants, Inc., a communications tools business that mainly serves intelligence agencies. The current AT&T coalition’s conditions bear a striking resemblance to the buy-out deal that originally spawned Tyto three years ago. The company’s true infancy was spent under a different moniker, NextiraOne, while still under the tutelage of Platinum Equity.

In the years leading up to this agreement, AT&T’s Government Services, Inc. carefully constructed an IT development and service model for government systems that caught the eye of a solutions-hungry Department of Defense. The innovative FirstNet network aided in organizing public safety operations and created an invaluable resource hub for first responders. GSI is one of nine contracted carriers of an Enterprise Infrastructure Solutions purchasing deal with the U.S. government. That contract connects GSI technology with corresponding agencies for mission-critical service requirements.

Tyto’s absorption of GSI will ideally offer an embodiment of an IT professional services solution be-all and end-all that’s eluded the industry at many turns. Keeping agencies refreshed with the latest innovations and having these resources readily at scale is merely a starting point for addressing the manifold concerns of a substantive client such as the U.S. government. The new version of Tyto expects the reach of its transformative capabilities to broaden even further through the facilitation of government IT management.

The fine print of the deal includes a host of multiple-award contract vehicles for Tyto’s arsenal. “The incremental IDIQ contract vehicles that will convey with GSI, such as Alliant 2, RS3, ITES-3S, Seaport-NxG, and MEGASTAR, will provide us new ways to contract with our customers,” said Chris Meilhammer, President and Chief Operating Officer of Tyto Athene. “We will continue to be poised to benefit from the secular tailwinds of U.S. government investment in legacy IT modernization and cybersecurity efforts. Tyto looks forward to teaming with AT&T to identify and pursue opportunities in the DoD and beyond.”

The finalized joint effort, retaining the Tyto Athene brand name, will manifest with around 1,200 operators spread over 18 worldwide offices. More logistical details are sure to trickle in steadily, as the deal will be officially closed around late first quarter or early second quarter 2021.