Tyto Completes Acquisition of stackArmor to Boost Federal IT Services
Deal News | May 08, 2025 | Arlington Capital Partners
In a strategic move to cement its position in the federal IT and cybersecurity sectors, Tyto Athene, a subsidiary of Arlington Capital Partners, has acquired stackArmor, a leading provider of compliance acceleration for government agencies. Tyto CEO Dennis Kelly lauded the acquisition, emphasizing stackArmor's role in enhancing Tyto's mission support across defense, national security, and public safety domains. The acquisition strengthens Tyto’s service offerings with stackArmor's cloud strategy and cyber automation solutions, positioning Tyto as a key player in compliance-driven, secure cloud solutions for federal clients. Arlington's Managing Partner, Michael Lustbader, underscored the acquisition as a reinforcing step for Tyto in becoming an end-to-end digital partner for the federal government.
Sectors
- Federal IT and Cybersecurity
- Private Equity
Geography
- United States – The primary focus of the acquisition is on providing solutions to US government agencies, and both Tyto Athene and stackArmor are US-based companies.
- Europe – Though primarily US-focused, Tyto Athene has operations in Europe, adding a geographical reach to its service capabilities post-acquisition.
Industry
- Federal IT and Cybersecurity – This classification is relevant as Tyto Athene focuses on providing IT and cybersecurity solutions to federal agencies, particularly with the acquisition of stackArmor, which specializes in compliance and cybersecurity automation.
- Private Equity – Arlington Capital Partners plays a significant role as a private investment firm backing Tyto Athene in this strategic acquisition, indicative of the private equity sector's impact on such deals.
Financials
- 3.8 billion – The size of Arlington Capital Partners' current investment Fund VI, from which Tyto Athene's acquisition of stackArmor is likely supported.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tyto Athene, LLC | Acquiring Company | Company | A federal systems integrator of mission-focused digital transformation solutions. |
| Arlington Capital Partners | Private Equity Firm | Company | A private investment firm focused on government-regulated industries, backing Tyto's acquisition strategy. |
| stackArmor, Inc. | Target Company | Company | Provider of FedRAMP, FISMA/RMF, and CMMC/DFARS compliance acceleration, cloud, and security automation solutions. |
| Dennis Kelly | CEO of Tyto | Person | Chief Executive Officer of Tyto who emphasized the importance of the acquisition for mission success. |
| Gaurav GP Pal | Co-founder of stackArmor | Person | Principal of stackArmor, highlighted the commitment to public sector innovation through the acquisition. |
| Michael Lustbader | Managing Partner at Arlington | Person | A managing partner at Arlington Capital Partners who highlighted the strategic importance of the acquisition. |