Arlington Defense Tech Firm Secures Billions in Federal Contracts
Notably, 38% of these activities were in the aerospace segment, while 35% occurred in government and defense technology, and 27% in government services. In October 2025 alone, 31 M&A transactions were noted, with 48% of these deals occurring in defense technology. Strategic acquirers accounted for 55% of the transactions, while private equity firms made up the remaining 45%.
Two Six Technologies, a defense technology firm based in Arlington, Virginia, has secured substantial federal contracts, bolstering its position in the defense industry. Established in 2021, the company has rapidly grown to become a key player in the sector, driven by its focus on technology outcomes rather than profits.
Company Overview and Expansion
Two Six Technologies is headquartered in Arlington, VA, and operates 20 different offices across the United States. This includes a new office that opened in Herndon, Virginia, in May 2024, and another in Laurel, Maryland. The company employs approximately 900 staff members, with 600 based in the DMV (District of Columbia, Maryland, and Virginia) region. This strategic positioning allows Two Six Technologies to maintain close relationships with the Department of Defense (DOD) and various intelligence agencies, facilitating a better understanding of customer needs.
The firm has engaged in four acquisitions since its inception, reflecting a broader trend within the defense sector where mergers and acquisitions (M&A) are common. These activities help reshape the competitive landscape and support the growth of defense tech startups focused on advanced technologies.
Strategic Partnerships and Relationships
Two Six Technologies has cultivated key partnerships with the Department of Defense and the Carlyle Group, underscoring its integral role in national security initiatives. The proximity to its partners allows the company to develop and refine technologies tailored for warfighters, enhancing the effectiveness of its solutions such as encryption and cybersecurity products.
In the broader context, Arlington hosts numerous defense tech startups that aim to innovate and compete with established entities. These startups often seek partnerships with larger defense contractors, leveraging federal funding to support their growth and contribution to national security.
Mergers and Acquisitions Landscape
The defense sector has witnessed significant M&A activity, with 125 Defense and Government M&A transactions recorded in the third quarter of 2025, marking a 30% increase from the previous year. Notably, 38% of these activities were in the aerospace segment, while 35% occurred in government and defense technology, and 27% in government services.
In October 2025 alone, 31 M&A transactions were noted, with 48% of these deals occurring in defense technology. Strategic acquirers accounted for 55% of the transactions, while private equity firms made up the remaining 45%. Among the notable transactions, McNally merged Quiet Professionals with Spathe, and Voyager acquired Estes Energetics, illustrating the dynamic changes within the industry.
Innovation and National Security
The innovation in defense technology is critical for maintaining national security, and Arlington's defense tech firms are at the forefront of developing these advanced technologies. Federal funding plays a crucial role in supporting these initiatives, enabling startups to innovate and contribute significantly to the sector.
With Arlington being a hub for defense tech startups, the region continues to attract companies focused on developing cutting-edge solutions. This environment fosters a competitive landscape where mergers and acquisitions are a strategic tool for growth and innovation, ultimately contributing to the nation's defense capabilities.