The Osage Limited Liability Company has acquired a Tennessee-based technology company for $3 million for 100 percent ownership of the company, which will help the LLC enter the government-contracting arena for revenue generating efforts.
Osage LLC CEO Carol Leese said the LLC signed the management and purchase agreements for Echota Technologies Corporation in October, making it the first company the LLC has purchased for 100 percent ownership. Echota Technologies is a Native American-owned company with experience in obtaining government contracting jobs with entities such as the Department of Defense.
“This is exciting for us, we have this huge opportunity of government contracting,” Leese said. “It takes a long time to buy the right companies,” he said adding the LLC completed a due diligence check of the company which included the company’s finances and visits with company officials.
Headquartered in Alcoa, Tenn., Echota Technologies is a graduate of the 8(a) business development program. The company provides technology and consulting services and is named after a principal Cherokee city where the people came to resolve their issues, according to the company Web site.
Its owner/ President/ CEO is Randy E. McGinniss. The company has three more offices in Idaho, Kentucky and North Carolina.
“Echota Technologies Corporation is very pleased to be joining the Osage LLC family of companies and expanding the presence and influence of American Indian-owned businesses across the country,” McGinnis said in a news release. “We are confident that our proven track record of service and our success in government contracting will contribute greatly to the success of Osage LLC now and in the future.”
Leese said a big draw for the LLC to Echota Technologies is its 8(a) graduation status, which helps smaller companies compete for contracts with federal government entities.
Created by a U.S. Congressional Act, the Small Business Administration helps award 8(a)-certified businesses subcontracts with the government.
The Echota Techologies acquisition will bring 11 years of the company’s government contracting expertise to the LLC and Osage Nation, according to an LLC announcement.
As a result, Osage LLC plans to start three new companies that will be dedicated to government procurement and will immediately place the companies into the 8(a) application process.
Leese said the LLC is also considering what opportunities Echota could offer in hiring Osages. He said future plans would call for opening an Oklahoma office closer to home for the state’s Osage residents, but did not immediately have a timeline when that would occur.
With regard to Echota’s operations, McGinnis will remain president/ CEO of Echota for at least five years, said Leese, adding that McGinnis will be reporting to him and the LLC.
“The acquisition of Echota will likely become the hub for Osage LLC’s centralization model for accounting since that company already owns the Del Tech government software necessary to be successful in government contracting,” Leese said. “To be in government accounting, it’s a whole new way of doing business.”
Echota Technologies also provides information technology services and training programs for several industries (including construction, environment and manufacturing). It has contract work with customer companies and entities including: Department of Energy, Department of Agriculture, Department of Defense (Army and Air Force) and commercial companies including Lockheed Martin Information Systems, Horizon Energy Group and Holland America Cruise Lines.
Launched in 2009, the LLC has entered into business relationships with other companies for passive investments and holds partial ownership with entities including Osage Manhattan Builders and Osage Pinnacle Design Group. Leese said Echota Technologies officials plan to meet with the Osage LLC subsidies to see how the company can work with those entities.