The Radnor-based private equity firm NewSpring Capital has sold a company that provides software to the Department of Defense, Department of Homeland Security, the intelligence community and other federal agencies for $590 million, writes Jeff Blumenthal for Philadelphia Business Journal.

The sale of Avantus Federal to QuinetQUS took place through NewSpring’s buyout strategy platform, NewSpring Holdings.

The deal will close at the end of 2022.

In 2018, NewSpring invested in Sentinel which then merged with the management consulting firm E3 Federal Solutions. The new company rebranded as Avantus in 2020.

NewSpring Holdings partnered with Avantus CEO Andrew Maner in eight acquisitions, helping Avantus grow from 12 to 1,200 employees over four years, according to Lee Garber, a partner with NewSpring Holdings.

It was a patient building up of Avantus, but Garber said it was time to sell.

“At the end of the day, we still are institutional investors that want to return capital to our investors along the journey,” he said.

NewSpring Holdings investment strategy takes small family-owned businesses and builds them into institutional-grade businesses, handling only a few businesses at a time.

In April, NewSpring made an investment in Philadelphia’s Federal Donuts.

Read more at Philadelphia Business Journal about NewSpring Holdings selling Avantus Federal.