by The Associated Press
RALEIGH, N.C. December 17, 2010, 10:38 am ET
An investment group with ties to the founder of the company formerly known as Blackwater announced Friday that it has bought the security firm, which was heavily criticized for its contractors’ actions in Iraq.
USTC Holdings said in a statement that the acquisition of the company now called Xe Services includes its training facility in North Carolina.
Terms of the deal were not disclosed. But the statement said owner and founder Erik Prince will no longer have an equity stake and no longer be involved in Xe’s management or operations. The company will be managed by a board appointed by the equity holders and will include independent, unaffiliated directors, the statement said.
The ownership group is led by two private equity firms, including New York-based Forte Capital Advisors. Forte managing partner Jason DeYonker has been a longtime financial adviser to Prince, helping him expand the Moyock, N.C., training grounds and negotiating Blackwater’s first training contracts with the U.S. government.
“The future of this industry belongs to those companies with the highest standards of governance, transparency, and performance,” DeYonker said.
Phi Beta Iota: Winston Churchill is known for saying Americans always do the right thing, they just try everything else first. Similarly, Russell Ackoff is known for saying that we have to stop doing the wrong things righter, and instead do the right thing. Private Military Contractors (PMC) are the wrong thing! Multinational hybrid task forces are the right thing–cheaper, faster, better in all respects. All we need to bring is integrity and intelligence (decision-support). PMC’s loot our own highly qualified human resources; cheat the taxpayer twice over (the government does it once first by hiring them in the first place); and are one step short of air dropping liquid feces over an entire area of responsibility (AOR). Not cool at all. Everyone means well, but this is about as dumb as it gets on all levels of thinking.