After over two decades of stewardship and funding by its owners and founders, the deLaski father and son team, in mid-2005 Deltek announced that New Mountain Partners II, L.P. (sponsored and managed by New Mountain Capital LLC, a private equity firm based in New York) would make a majority capital investment in the company. Under the terms of the investment agreement, New Mountain would purchase 75 percent of Deltek's shares, while the deLaski family and management shareholders would continue to own 25 percent. New Mountain Partners II, L.P. is New Mountain's second fund, with $1.55 billion (USD) in committed capital; Deltek was New Mountain's second investment in this new fund. Interestingly, the Deltek move was the equity firm's third investment in a Virginia-based company: in 2001, the firm made an investment in Strayer Education Inc. (NASD: STRA), followed in 2003 by a majority control investment of Chantilly, Virginia (US)-based Apptis. New Mountain claims to invest for long-term capital appreciation through direct investment in growth equity transactions, leveraged acquisitions, and management buyouts. To that end, it focuses on niche, cash-flow-rich opportunities, as with other past investments such as Overland Solutions and National Medical Health Card Systems.
There have been no major changes in operations at Deltek as a result of the investment by New Mountain, nor there have been any staff reductions. Ken deLaski initially continued as Deltek's chair and chief executive officer (CEO), and was joined on the board of directors by New Mountain managing directors Alok Singh and Michael Ajouz, as well as Steven Klinsky, New Mountain's founder and CEO (who had previously co-founded Goldman Sachs & Co. Leveraged Buyout Group, and served as senior partner at Forstmann Little & Co.). Additional outside board appointees were to be named during the several months following the investment.
Soon after, in June 2005, Deltek named Kevin T. Parker as the company's new CEO. According to Deltek, the appointment was made to bring "a new level of expertise to accelerate the company's future growth and success" in the enterprise resource planning (ERP) marketplace. Ken deLaski, who co-founded Deltek in 1983, and who was CEO from 1996 until 2005, remained on as Deltek's chairman until May 2006, when he retired from the board of directors. Today, Parker serves as chairman.
As for Parker's history, he was appointed senior vice president (SVP) and chief financial officer (CFO) of PeopleSoft in 2000. Beginning in 2004, he was co-president and CFO, until the company's acquisition by Oracle later that year. He had led efforts to increase PeopleSoft's operating margin, and was actively involved in all facets of the business, including directing all shareholder communication and activity during Oracle's eighteen-month hostile tender offer. The architect and driving force behind PeopleSoft's innovative and protective Customer Assurance Plan (CAP), he also orchestrated PeopleSoft's strategic acquisition of JD Edwards in 2003, which added 7,000 new customers and 6,000 new employees, making PeopleSoft the world's second-largest enterprise software company at the time. Prior to joining PeopleSoft, Parker had held senior executive positions with Aspect Communications, a provider of contact center solutions and services, and Fujitsu Computer Products of America, a provider of data storage and imaging solutions.
Since its foundation, Deltek had been run as a successful business (albeit sometimes regarded as a family-run or "lifestyle" business). But in 2005 it decided that the time had come to embark on the next level of growth. To that end, Parker's business philosophies—high levels of customer service, technology leadership, and employee teamwork—are in tune with its core values. But the idea behind the new recapitalization and new management was to address many drawbacks that came from the company's traditionally lower profile. Already a recognized ERP leader for North American project-based businesses, Deltek is now looking to strengthen its global position in its target vertical in both the large enterprise and small and medium business (SMB) markets.
There have been no major changes in operations at Deltek as a result of the investment by New Mountain, nor there have been any staff reductions. Ken deLaski initially continued as Deltek's chair and chief executive officer (CEO), and was joined on the board of directors by New Mountain managing directors Alok Singh and Michael Ajouz, as well as Steven Klinsky, New Mountain's founder and CEO (who had previously co-founded Goldman Sachs & Co. Leveraged Buyout Group, and served as senior partner at Forstmann Little & Co.). Additional outside board appointees were to be named during the several months following the investment.
Soon after, in June 2005, Deltek named Kevin T. Parker as the company's new CEO. According to Deltek, the appointment was made to bring "a new level of expertise to accelerate the company's future growth and success" in the enterprise resource planning (ERP) marketplace. Ken deLaski, who co-founded Deltek in 1983, and who was CEO from 1996 until 2005, remained on as Deltek's chairman until May 2006, when he retired from the board of directors. Today, Parker serves as chairman.
As for Parker's history, he was appointed senior vice president (SVP) and chief financial officer (CFO) of PeopleSoft in 2000. Beginning in 2004, he was co-president and CFO, until the company's acquisition by Oracle later that year. He had led efforts to increase PeopleSoft's operating margin, and was actively involved in all facets of the business, including directing all shareholder communication and activity during Oracle's eighteen-month hostile tender offer. The architect and driving force behind PeopleSoft's innovative and protective Customer Assurance Plan (CAP), he also orchestrated PeopleSoft's strategic acquisition of JD Edwards in 2003, which added 7,000 new customers and 6,000 new employees, making PeopleSoft the world's second-largest enterprise software company at the time. Prior to joining PeopleSoft, Parker had held senior executive positions with Aspect Communications, a provider of contact center solutions and services, and Fujitsu Computer Products of America, a provider of data storage and imaging solutions.
Since its foundation, Deltek had been run as a successful business (albeit sometimes regarded as a family-run or "lifestyle" business). But in 2005 it decided that the time had come to embark on the next level of growth. To that end, Parker's business philosophies—high levels of customer service, technology leadership, and employee teamwork—are in tune with its core values. But the idea behind the new recapitalization and new management was to address many drawbacks that came from the company's traditionally lower profile. Already a recognized ERP leader for North American project-based businesses, Deltek is now looking to strengthen its global position in its target vertical in both the large enterprise and small and medium business (SMB) markets.
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