The federal arm of Swedish telecommunications firm Ericsson has been bought by a private-equity firm and renamed Oceus Networks.
Now, the Reston-based company is seeking to establish its new brand, significantly boost its staff and make acquisitions to extend its reach.
Douglas C. Smith, president and chief executive at Oceus, came to Ericsson in 2003 to launch its federal business in Vienna. About three years ago, Ericsson bought telecommunications firm Marconi, and Smith incorporated that company's federal business into the Ericsson unit and relocated to the current office in Reston.
Earlier this year, Ericsson announced it had sold off the federal unit to New York-based private-equity firm Tailwind Capital, which focuses on growing companies. As part of the deal, Oceus was granted the exclusive right to sell Ericsson's off-the-shelf technology.
The company specializes in designing, constructing and operating wireless networks as well as providing devices that can be encrypted for government use.
Smith said the transition should allow Oceus to focus more closely on the federal government and to operate as a U.S. business, making it easier to win work operating Defense Department networks here and abroad. The company's name is a derivation of a Latin word for speed, said Smith.
Oceus now employs about 105 people, more than half of them at its Reston office. Smith said he expects to add more than 50 employees this year and to expand the company beyond its existing office. The firm has no room to grow at the Reston building, meaning it will have to look at new office space.
The business just announced additions to its executive team, adding former ICF International chief financial officer Alan Stewart as chief financial officer; former Merlin International sales director Peter Brady as vice president of sales; and Gary Messina, who worked at Raytheon and L-3 Communications, as vice president of business development.
Smith said he expects to increase revenue by 50 percent, though he declined to share the company's current revenue.
Oceus is seeking acquisitions that offer complementary services, particularly companies with technology that can store, tag and analyze the data transported over Oceus networks. Smith said the business is actively looking for potential buys.
Oceus isn't the only unit separating from its corporate parent. For instance, Booz Allen Hamilton split from its commercial business in 2008.
Federal units sometimes suffer from lack of attention when they're part of larger commercial businesses, said Andy Smith, a principal with the investment firm McLean Group. Oceus is a client, and the McLean Group worked on the Tailwind transaction.
“I think there is a lot of benefit to having isolated entities that target the federal space,” he said.
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