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LMI steps up acquisition activity

US government consulting firm LMI has expanded its work on potential acquisitions since it was purchased by a group of seasoned investors, according to the company's top executive.

LMI, which was earlier able to consider only one or two acquisitions at a time, can now do a “deep dive” on four at a time thanks to the expertise and resources of its new owners, president and CEO Doug Wagoner told Janes on 13 September. As a result of that faster cadence, LMI expects to complete one or two acquisitions by the end of 2022.

LMI is looking at acquisitions to enhance its capabilities in areas such as agile software development in the space sector and in systems engineering. Acquisitions will accelerate LMI's growth, improving its ability to compete for large contracts. Small contracts are increasingly out of reach for LMI because the government has increased the size of contracts that are set aside for small businesses, according to Wagoner.

“We're trying to punch through against the Booz Allens and the Deloittes,” he said.

Founded in 1961 as Logistics Management Institute, a name it has moved away from using, LMI employs about 2,100 people and expects to generate about USD500 million in revenue this year. It intends to double its revenue to USD1 billion “in a few years”, Wagoner said.

The US investor group, which consists of Declaration Partners, Capitol Meridian Partners, and 22C Capital, acquired LMI for an undisclosed sum in July. LMI was earlier a for-profit subsidiary of a nonprofit. The for-profit entity retained the LMI name while the nonprofit, which has fewer than 10 employees, renamed itself NobleReach Foundation and addresses “interdisciplinary security challenges”.

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