After being away for awhile, and coming back into the blogging and social media scene, I had to choose what story I wanted to talk about that is the most interesting to the community. There is so much going on out there that it is kind of overwhelming to find an entry point back into the mix. With that said, this site is dedicated to PMSC news and I believe this merger story is pretty damn interesting. Enter ‘Triple Academi’… lol
This is big news. A merger between Triple Canopy and ACADEMI, along with other companies that were part of the Constellis Group package, are now all gathered under the Constellis Holdings, Inc. umbrella. The list of companies in the form of a graphic is posted below, complements of Danger Zone Jobs.
So the first thing to go over, seeing how I am coming in late on this story, is to see what has been said. Over at Soldier Systems, they posted the news and the comments are telling. Some fear that pay will drop now that the companies are consolidating. Especially when TC and ACADEMI are running contracts that mirror each other in Afghanistan, like the Leatherneck and Dwyer gigs, and yet both companies have different pay schemes. I suspect that the current contracts signed by independent contractors will remain in place. But for future contracts signed by IC’s, will the pay be the same now that both companies are under the same ownership? Who knows?…
The other fear is that one company’s culture might clash with the other company’s culture and the way they do business. There is always the perception with competing companies, that the other guy doesn’t know what they are doing or are poor service providers or have a terrible culture/system in place. My guess is that the companies will still do their own thing and any changes will be minor. But you never know, and there might be plans to ‘change’ things around.
The changes that were announced were the consolidation of training at ACADEMI’s training facility, which will be a huge savings. Triple Canopy has a portion of the WPS contract as well, and to be able to tap into a world class training facility at Moyoc, will absolutely lead to savings. Hopefully those savings will help all companies involved realize that salaries should not be messed with, especially since IC’s and employees will know of these savings.
To get a feel for what the WPS guys and other contractors are saying about this merger’s impact on the WPS program, go over to SOCNET and follow their thread. The pay is the big issue.
Another change that was announced in the press release was to have all companies answer to one CEO, and that would be Craig Nixon of ACADEMI. The quote below says it all.
The combined ownership group will employ more than 6,000 of the industry’s most experienced and best-trained employees and will be led by CEO Craig Nixon.
That is like being in command of a brigade, and seeing how Mr. Nixon was actually a Brigadier General in the US Army, he should be somewhat familiar with the size and scope of leading such a large group. Although running a private company versus a military unit has it’s own set of unique challenges and he also has a board of directors to answer too. He can also tap into an excellent sounding board for ideas over at the McChrystal Group. Perhaps even fire up a management school at ACADEMI and implement some CrossLead or something like that for it’s leaders? Or better yet, contract the services of Adaptive Leader LLC… Just saying.
The other big news with this is that by proxy, Blackwater or ACADEMI, is now back in Iraq! lol With the merger of TC, which has WPS contracts in Iraq, by proxy, ACADEMI now has some ‘family’ in Iraq. It is ironic as well, that TC was the company that took over the WPS contracts from BW back in the day after the whole Nisour Square fallout.
Triple Canopy is also holding the line at the US Embassy in Baghdad, along with the Marines and Army that have been sent to protect. TC also has WPS contracts in the south of Iraq. To get a feel for what they are doing there, here is an OIG report from March of 2013 that details that stuff. (the numbers of security contractors have probably changed since the report, but they referenced the company’s muster list as 1200 contractors dedicated to the Embassy and the INL-Iraq program)
As to how this merger impacts TC’s ESOP program, I have no clue. Will this mega merger form an ESOP that everyone can participate in, who knows?
One suggestion to the companies is to communicate clearly with everyone in your chain, exactly what changes will happen. I imagine they are already doing this, but I can’t stress enough how important this is for the sake of those guys working out in the field and making things happen for these companies. Keep your people informed and a part of the process!
My final point, is for contract bids in the future. The companies within this merger have strength in numbers. They can bid lower, now that they have resources within the group of companies. Especially with training or personnel management. So Constellis Holdings will be a big player when it comes to bidding on contracts and they will leverage their advantage big time.
Well, this is all the commentary I have on the subject right now. I will make edits as information comes in and I invite the companies to make any announcements through this site if they wish. Mergers and Acquisitions in this industry are not new and I have written about it in the past and how this was predicted as the wars wind down. So the question is, who will merge next? –Matt
Constellis Holdings, Inc. Acquires Constellis Group, Inc.
June 06, 2014
Constellis Holdings, Inc. has agreed to acquire Constellis Group, Inc., a leading provider of security, support and advisory services to government, multinational corporations and international organizations operating in challenging environments around the world. Constellis Holdings was formed by the founders of Triple Canopy and the private equity investors who formed ACADEMI.
Read the rest of this entry »