Loveland-based background investigation firm merges with major IT players

LOVELAND — KeyPoint Government Solutions, based in Loveland, is merging with two other companies to form a publicly traded company that will serve U.S. public-sector clients with information-technology services.

DXC Technology (NYSE: DXC) in Tysons, Va., is spinning off its U.S. Public Sector (USPS) business to merge with KeyPoint and Vencore Holding Corp., both of which are owned by affiliates of private equity firm Veritas Capital. Veritas will remain an investor in the new company.

The merger is subject to regulatory approval and is expected to be complete in March 2018.

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The combined company will offer cybersecurity, big-data analytics, cloud engineering, enterprise IT services and systems engineering. It’s expected to have $4.3 billion in combined revenues and a workforce of more than 14,000.

Although it’s still early in the merging process, a spokeswoman for KeyPoint said it’s likely there won’t be many changes to operations with that part of the company.

“We’re kind of unique,” said Sue Ordakowski, a spokeswoman for KeyPoint. “The deal about this merger is there is very little overlap between the three companies. Since what we do is unique, there is no reason to believe there will be any change.”

KeyPoint provides background investigations for the federal government. The company has a workforce of about 3,500, although Ordakowski was unsure how many were based in Loveland.

With the merger, DXC will continue operations in commercial and non-U.S. public sector IT.