American Systems acquires Epsilon, adds 400 employees

Chantilly-based government IT contractor American Systems announced this week that it has acquired North Carolina-based cybersecurity company Epsilon.

American Systems, which provides IT and engineering services to the federal government in aid of national security, said the transaction marks its largest acquisition to date, with more than 400 Epsilon employees joining the company.

Financial terms of the transaction were not disclosed, and neither company immediately returned requests for comment. It is unclear whether any Epsilon executives will take on leadership roles at American Systems and if there will be any layoffs due to the merger.

“Acquisitions are an important element of our growth strategy, and we work hard to ensure that we select companies that are a good fit for us, both strategically and culturally,” American Systems President and CEO John Steckel said in a statement. “Epsilon shares our commitment to supporting national priorities, and their culture will mesh well with ours. This acquisition marks an important milestone in our strategic growth, broadening our customer base and deepening our ability to support them in their efforts to modernize and transform securely, rapidly and efficiently.”

The company says Epsilon’s service offerings will be integrated with American Systems in January 2026. Until then, Epsilon will continue to support select markets as a wholly-owned subsidiary.

Founded in 2009, Epsilon is also a government contractor. It is headquartered in Weaverville, North Carolina, but has a key office in Crystal City.

“Joining American Systems allows us to take everything that we have built over the past sixteen years and make it even better.” said Epsilon CEO Peter Penzell. “Expanding on what we have built while giving our employees the opportunity to become employee-owners in American Systems creates an amazing opportunity for everyone.”

PilieroMazza and Deep Water Point and Associates advised American Systems on the transaction, and KPMG Corporate Finance and Miles & Stockbridge advised Epsilon.

Founded in 1975, American Systems ranks among the top 100 employee-owned firms in the nation, with more than 1,600 employee owners. It surpassed $400 million in annual revenue in 2020.