Veritas Capital Acquires MetroStar Systems to Bolster National Security Technology

Veritas Capital acquires MetroStar Systems technology.
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    Veritas Capital has announced its agreement to acquire MetroStar Systems, a prominent provider of digital transformation and AI solutions for U.S. Defense and National Security agencies. This strategic move, executed through affiliates of The Veritas Capital Vantage Fund, is set to enhance Veritas’s standing in the mission-critical government technology sector and propel MetroStar’s growth and innovation.

    Key Takeaways

    • Veritas Capital is acquiring MetroStar Systems, a specialist in digital transformation and AI for national security.
    • The acquisition aims to accelerate MetroStar’s growth and innovation within the government technology sector.
    • MetroStar has a nearly thirty-year history of supporting Defense and Intelligence organizations.
    • The deal is expected to close in the fourth quarter of 2025, pending regulatory approval.

    Strategic Acquisition for National Security

    MetroStar Systems, based in Reston, Virginia, has established itself as a key player in delivering advanced digital solutions and artificial intelligence capabilities to critical U.S. government entities. The company, recently recognized as Contractor of the Year in its category at the Greater Washington Government Contractor Awards, boasts a nearly three-decade track record of supporting Defense and Intelligence organizations. Its expertise lies in AI-enabled services and software designed to help agencies rapidly adopt new technologies, improve decision-making processes, and amplify their mission effectiveness.

    Veritas Capital’s Strategic Vision

    Veritas Capital, a significant investor focused on technology and government sectors, views MetroStar as a highly complementary addition to its Vantage Fund platform. MetroStar will operate as a core holding within this platform. The acquisition is anticipated to fuel accelerated investment in MetroStar’s talent, foster further innovation, and develop next-generation capabilities crucial for enhancing national security outcomes. This partnership is expected to empower MetroStar to scale more rapidly and invest more deeply in research and development.

    Leadership Perspectives

    Ali Reza Manouchehri, Co-founder and CEO of MetroStar, expressed enthusiasm for the partnership, stating, "Together with Veritas, we’re building the new model for how services, solutions, and software must be delivered for America to win the AI race. This partnership will allow us to scale faster, invest deeper in innovation, and empower our federal partners to accelerate their missions with greater speed, trust, and intelligence."

    Hugh Evans, Managing Partner at Veritas Capital, added, "MetroStar has distinguished itself as a fast-growing and highly respected partner to U.S. government agencies at the forefront of national security, defense, and modernization. We are excited to partner with Ali and the entire MetroStar team as they continue to scale the business, deepen customer impact, and ensure its agency partners are well-equipped to harness the full potential of emerging technologies."

    The transaction is slated for completion in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals. Financial terms of the deal have not been disclosed. KippsDeSanto served as financial advisor and Holland & Knight LLP as legal counsel to MetroStar, while Latham & Watkins represented Veritas Capital.

    Sources