Leading Provider of End-to-End National Security Advisory Services Merges with Cybersecurity, Agile Engineering, and Critical Infrastructure Protection Firm
McNally Capital (“McNally”), a private equity firm, is pleased to share that Xcelerate Solutions (“Xcelerate”), a portfolio company of McNally, announced its merger with VMD Corp (“VMD”). Xcelerate is a leading defense and national security company, providing integrated solutions through three service areas – Enterprise Security, Digital Transformation, and Strategic Consulting. VMD is a cybersecurity, agile engineering, and critical infrastructure protection firm based in Fairfax, Virginia. The combined company will go to market as Xcelerate Solutions, offering a comprehensive, mission-first portfolio of secure solutions to the federal government.
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“Together with VMD, our expanded capabilities, contracts, and specialized expertise make a powerful statement to the government market.”
“We see this merger as a win-win. We share similar cultures, like-minded leadership, and a deep commitment to delivering positive mission outcomes,” said Mark Drever, Chief Executive Officer of Xcelerate. “Since McNally Capital’s investment, we’ve been actively looking to expand our security and IT capabilities through M&A. McNally’s immense national security expertise, network, and efforts were instrumental in this transaction, and VMD is a great match.”
“McNally Capital is proud of our partnership with Xcelerate and excited for the combined growth journey with VMD. We look forward to working together as we continue building and scaling this industry-leading platform,” said Ward McNally.
The merged company boasts an experienced team of over 1,000 technology professionals dedicated to delivering a broad spectrum of cybersecurity, enterprise, and infrastructure protection services focused on mission-first delivery. The depth and versatility of the two companies as one presents opportunities for diversification and growth across its defense, law enforcement, national security, civilian agencies, and the federal government. Mark Drever adds, “Together with VMD, our expanded capabilities, contracts, and specialized expertise make a powerful statement to the government market.” Xcelerate plans to capitalize on the combined strengths of both companies, foster a mission-first culture, align leadership, and crystallize its go-to-market portfolio to best serve federal clients in the coming months.
“We are excited about what this merger will mean to our clients,” echoed VMD co-founders Deepti Malhotra, Chief Executive Officer, and Vivek Malhotra, President. “Not only will it broaden our portfolio, but it will allow us to leverage the strengths of both companies, offering new solutions across our engagements.”
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“McNally Capital is thrilled to welcome VMD to Xcelerate and the broader McNally Capital portfolio. Like Xcelerate, VMD has built a reputation for trusted delivery, deep technical talent, and elite engineering prowess. We believe this powerful partnership will provide a solid foundation for driving future growth and creating value for our investors,” said Michael Ember, Principal at McNally Capital.
McNally’s investment in Xcelerate stemmed from the firm’s internal expertise in the Aerospace & Defense industry and investment thesis in intelligence and national security. Xcelerate’s merger with VMD bolsters this thesis and is a testament to McNally Capital’s proprietary value creation framework at work. This strategic transaction accelerates the business’s growth trajectory and capitalizes on McNally’s expertise in implementing digital, technology-enabled, transformative solutions to modernize historically analog problems.
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