By Light Acquires Dignitas, Forging a Defense Training Powerhouse

MCLEAN, VA – February 10, 2026 – By Light Professional IT Services LLC, a portfolio company of Sagewind Capital, today announced its acquisition of Dignitas Technologies, a move that creates a formidable new force in the military’s advanced training and simulation sector. The deal, whose financial terms were not disclosed, merges two key Department of Defense (DoD) contractors, strategically positioning the combined entity to meet the escalating demand for sophisticated virtual and cyber warfare training solutions.

This acquisition solidifies a pre-existing partnership, uniting By Light's broad systems integration and cyber capabilities with Dignitas's specialized expertise in architecture-centric training software. The move is a direct response to the military's growing need for cost-effective, hyper-realistic training environments that can prepare warfighters for the complexities of the modern, multi-domain battlefield.

“The acquisition of Dignitas strategically broadens By Light’s existing capabilities within modeling & simulation and virtual training,” said Bob Donahue, Founder and CEO of By Light. “Dignitas expands our product and solutions offering in the critical areas of cyber training, virtual cyber effects and live, virtual and constructive training in multi-echelon simulations across the DoD. We’re excited to add these capabilities into By Light’s synthetic training ecosystem.”

A Strategic Consolidation in Defense Tech

The merger arrives at a pivotal moment for the defense industry. The global military simulation and training market, valued at approximately $12.9 billion in 2023, is on a steep growth trajectory, projected to exceed $20 billion by 2033. This expansion is fueled by a confluence of factors: rising defense budgets, the imperative for safer and more economical training alternatives to live exercises, and the rapid evolution of threats in cyberspace and beyond. Consolidation has become a key strategy for market leaders aiming to capture growth and broaden their technological arsenal, a trend exemplified by this acquisition.

By Light, a major provider of the U.S. Army's Synthetic Training Environment (STE), now absorbs a company renowned for its agile and specialized solutions. Dignitas Technologies, based in Orlando, Florida—a hub for modeling and simulation—has built a reputation for developing mission-critical rehearsal applications for the Army, Navy, Air Force, and Marine Corps. This union is less a takeover and more a calculated fusion of complementary strengths, designed to create a one-stop shop for next-generation military readiness.

Elizabeth Burch, CEO of Dignitas Technologies, underscored the synergy between the two firms. “We are excited to join By Light, who supports the mission and warfighter the same as we do,” she stated. “Our companies have been working together for years as partners, and this just solidifies our relationship and brings greater capabilities to our customers and opportunities for our employees. By Light is a perfect fit for us as we move into our next exciting chapter of growth.”

Forging a Virtual Warfighting Powerhouse

The true significance of this deal lies in the combined technological prowess aimed at mastering the future of simulated warfare. At the core of this future is the concept of Live, Virtual, and Constructive (LVC) training. LVC environments integrate live soldiers and equipment with virtual simulators and computer-generated constructive forces, creating a seamless, large-scale training ecosystem that is both immersive and highly adaptable.

By Light already delivers key components of this vision, including its CyberCENTS® platform for cyber range exercises and the Army's Reconfigurable Virtual Collective Trainer (RVCT). The integration of Dignitas's portfolio provides a significant force multiplier. Dignitas brings specialized tools like its Intelligent Cyberspace Adversaries Tool (ICATS) and CyberBOSS platform, which will enhance By Light's ability to simulate sophisticated cyber threats. Furthermore, Dignitas excels in creating rich, dynamic synthetic environments, from dense urban megacities to physics-based terrain and weather, adding a new layer of realism to By Light's existing simulation platforms.

This technological fusion is particularly crucial for advancing the DoD's capabilities in multi-domain operations, where battles are fought simultaneously across land, sea, air, space, and cyberspace. The combined entity is now better equipped to develop training scenarios that accurately model these complex interactions, leveraging Dignitas's expertise in Artificial Intelligence and Machine Learning to create adaptive adversaries and intelligent tutoring systems that challenge warfighters in real time.

A Portfolio of Mission-Critical Contracts

The strategic value of the acquisition is cemented by the powerful portfolio of government contracts the unified company now commands. By Light is already deeply embedded in major Army modernization programs. The addition of Dignitas's contractual footprint creates a robust and diversified pipeline of high-priority work across the armed forces.

Dignitas holds several flagship contracts that highlight its critical role. In June 2025, it was awarded a $99 million contract to support the Naval Air Warfare Center's Advanced Computer-based Training Systems II (ACTS II), a program that provides 3D virtual training environments for sailors and marines. The company also secured a key prototype agreement in September 2025 to develop the Army's Next Generation Constructive (NGC) solution, a cornerstone of the broader Synthetic Training Environment.

Perhaps most notably, Dignitas is part of a team awarded a Missile Defense Agency IDIQ contract with a staggering ceiling of $151 billion, focused on layered defense systems. When combined with By Light's extensive contract vehicles, including a $900 million Army Modernization Priorities contract, the new entity possesses unparalleled access and influence over the future direction of military training and technology development.

The Private Equity Playbook in National Security

Behind this strategic consolidation is Sagewind Capital, the New York-based private equity firm that counts By Light as a key portfolio company. The acquisition of Dignitas perfectly aligns with Sagewind's established playbook: identify differentiated businesses in the defense and government technology sectors and fuel their growth through strategic M&A and organic investment. Sagewind’s strategy focuses on building market leaders that advance national security, and this move is a clear execution of that vision.

This is not Sagewind’s first major foray into the defense tech space. The firm previously acquired QuantiTech, a provider of high-end engineering services, and more recently made a majority investment in Aechelon Technology, a leader in the visual simulation software used in military flight trainers. The pattern is clear: Sagewind is methodically assembling a constellation of specialized technology firms to create integrated platforms that can serve the government's most complex needs.

By backing By Light's acquisition of Dignitas, Sagewind is betting on the long-term, non-cyclical demand for advanced training solutions. The move leverages private capital to accelerate innovation and consolidation in a sector critical to national defense, creating a more agile and capable partner for the DoD while aiming for significant capital appreciation. This merger signals a new phase of growth for both companies, now united in their mission to equip the modern warfighter for the challenges of tomorrow.