Private equity firm Welsh, Carson, Anderson and Stowe (“WCAS”) is a tech-centric investment firm headquartered in New York City, with over $27 billion under management and over 90 employees. Focusing on technology and healthcare, WCAS’s 40 year run in private equity has made it a household name in their field, working with such firms as Concentra and Revel Systems.

In a strategic move to diversify, WCAS has announced their acquisition of GovernmentCIO, an IT services and consulting provider for the federal government.

GovernmentCIO is one of the leading contractors behind technological advancements in federal health services, including the Department of Veteran Affairs and the Department of Health and Human Services. GovernmentCIO, founded in 2010, also supports the Department of Labor and the Defense Health Agency.

The announcement comes a week after WCAS’s decision to allow other firms to buy into their Clearwater Analytics holding - a move that no doubt helped to clear up capital for the GovernmentCIO acquisition.

Jim Brabston, a former senior executive with Stanley Inc. and Camber Corporation, will take the helm as CEO of GovernmentCIO. Brian Moran, the veteran founder of the firm, will stay on as an executive and will retain a large but minority share.

The acquisition will allow GovernmentCIO to further expand and improve its offers to government health departments, giving them a foot in the door to more intensive projects. On WCAS’s end, the acquisition will diversify their portfolio and give them valuable inroads to more government IT contract work.

The partnership is not only the best financial and strategic move for the firms. It also signifies the growth of an ongoing partnership between the government and private enterprises. With the investment of companies like WCAS, government contractors can provide even more valuable IT services to the government for even better prices. Veterans, along with those unable to pay for medical care and other essentials, will see the direct benefits of partnerships like the one between WCAS and GovernmentCIO.