Business

Xe, formerly Blackwater, sold to NY group

Posted December 17, 2010 8:34 a.m. EST
Updated December 17, 2010 8:37 a.m. EST

— A consortium of New York investors is buying North Carolina-based Xe Services, the company formerly known as Blackwater.

Financial terms were not disclosed.

Xe Services, which was founded in 1997 and became embroiled in controversy with its private contractors in the wars in Iraq and Afghanistan, is based in Moyock in Currituck County.

USTC Holdings, the acquiring group, includes private equity firms Forte Capital Advisors and Manhattan Partners.

Xe continues to provide training at its huge complex as well as global security and technical services.

“Xe provides indispensible training and expertise to government and commercial entities around the world," said Jason deYonker, managing partner at Forte. "We look forward to partnering with management to realize our collective vision for Xe’s future.”

DeYonker has worked closely with Xe and Blackwater founder Erik Prince, serving as co-manager of Prince's family business from 1998 through 2002. Prince stepped away from the firm in early 2009.

The acquiring firms noted that Prince is the "sole selling owner and member, will divest the entirety of his equity stake through the transaction and will not be involved in the management or operation of the Company."

Management of Xe will come through a board appointed by the new owners.

Bank of America Merrill Lynch provided the financing.