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High Street Capital Acquires Controlling Stake in NeoSystems
Tuesday 14 September 2021

US-based outsourcer, IT systems integrator and managed services provider NeoSystems, serving the government contractor market, is being acquired by Chicago-based private equity firm High Street Capital, the company said.

Financial terms of the deal were not disclosed.

The company will continue to be led by NeoSystems CEO and co-founder, Michael Tinsley, and co-founder and CTO, Rob Wilson, along with its current management team.

With investment from High Street Capital, NeoSystems plans to bolster its resources including expanding and deepening its capabilities, adding to its customer support staff, launching new products, broadening its channel offerings, and expanding its workforce to better meet growing client demand for its services.

According to IBISWorld, the market size, measured by revenue, of the Business Process Outsourcing Services industry is USD 54.8bn in 2021.

NeoSystems, who will retain its name, will continue to be based in Northern Virginia at its Tyson's Corner campus that houses its nearly 200-strong workforce.

Earlier this year, NeoSystems announced attaining Registered Provider Organization status, a large initiative led by the Department of Defense to significantly strengthen the security of its supply chain.

High Street Capital is a provider of flexible capital and operating expertise to lower middle market businesses.

The firm looks to acquire, recapitalize, and provide growth capital to outsourced business services, niche manufacturing and value-added distribution and logistics companies with revenues of USD 10 to USD 100m.

NeoSystems, based in Tysons Corner, Virginia, is a full service strategic outsourcer, IT systems integrator and managed service provider delivering services and solutions to enable, run and secure government contractors, commercial entities and nonprofit organizations.

The NeoSystems team enables companies to improve vital operations, reduce their overhead costs and become compliant with complex requirements.

Today NeoSystems maintains a 97% client retention rate, and supports over 600 companies and more than 100,000 client employees with its outsourced services.

NeoSystems' experts have implemented hundreds of fully-integrated financial and business management systems, utilizing best of breed technology and leveraging in-depth domain expertise in Accounting and Finance, IT, HR, Security and Hosting (SSAE SOC1 and SOC2, ITAR). NeoSystems has been named one of America's fastest growing private companies by Inc. Magazine.
Date Published: 14/09/2021