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In a blockbuster move set to reshape the government-tech landscape, MGT revealed Wednesday that Ares Management Corp. has pumped $350 million into the firm — a deal that rockets MGT’s valuation to $1.25 billion and positions it for aggressive expansion.

The investment lands like a jolt of electricity in a sector racing to modernize everything from cybersecurity to K-12 academic infrastructure.

A Strategic Bet on SLED Transformation

Founded in 1975, MGT has quietly become a heavyweight in the state, local and education (SLED) market, as well as federal government advisory services. Its broad tech and consulting portfolio targets mission-critical challenges such as:

• Technology modernization

• Artificial intelligence integration

• Campus and cyber security

• Human capital and workforce solutions

• Fiscal and facilities management

• K-12 school performance improvement

With 1,100+ employee-owners, MGT claims to serve 2,500 clients and indirectly impact over 200 million people annually, including 20 million K-12 students.

Ares’ Backing Unlocks a New Expansion Era

In announcing the deal, CEO Trey Traviesa said Ares' investment “validates our strategy” to dominate the social-impact and performance-driven government services market.

“With Ares' support, we significantly expand our capacity to undertake larger acquisitions and accelerate the high-impact growth and transformation we set out to achieve,” Traviesa said.

The infusion comes halfway through MGT’s four-year value creation plan, launched after a majority investment from The Vistria Group in April 2023 — a period during which MGT has already tripled its enterprise value.

Ares joins a heavy-hitting roster of existing investors, including Vistria, J.P. Morgan and WhiteHorse Capital. With $572 billion in assets under management, Ares brings deep capital strength across credit, real estate, private equity and infrastructure.

Legal Advisors Still Undisclosed

While the financial contours of the transaction are now public, the law firms behind the deal remain unannounced. Representatives for the parties did not immediately respond to requests for comment.