M&A

Empower AI acquires Highlight Technologies to widen federal AI reach

What's the deal? Empower AIDealroom has a profile for this one. Try Dealroom → has acquired Highlight TechnologiesDealroom has a profile for this one. Try Dealroom →, a Fairfax, Virginia-based federal IT services firm, the company said on July 7, 2026. The transaction is effective the same day. Terms were not disclosed.

What each side brings: Reston, Virginia-based Empower AI provides AI, engineering, software, and infrastructure modernization services to federal missions. Highlight, founded in 2008 and employee-owned, delivers DevSecOps, cloud, AI/ML, and data management across civilian, homeland security, and defense customers.

The strategic rationale: The deal expands Empower AI's ability to deliver AI-driven, cloud-enabled solutions across the federal government. It strengthens work on modernization initiatives at the Departments of State and Homeland Security.

Why it matters: A key asset is Highlight's AIDE (AI Data Integration & Orchestration Engine), recently assessed as "Awardable" in the Department of Defense Chief Digital and Artificial Intelligence Office's Tradewinds Solutions Marketplace. That listing expands Empower AI's access to emerging defense opportunities.

What they're saying: Highlight CEO Aarish Gokaldas called the companies "a natural fit," saying the combination creates "the platform and scale to deliver even greater impact for the missions we serve." Jeff BohlingDealroom has a profile for this one. Try Dealroom →, Empower AI's CEO, said Highlight brings "exceptional talent, proven technology, and deep agency relationships."

What's the endgame? Empower AI wants to grow its proprietary AI accelerator portfolio. The combined organization aims to deliver faster deployment, better interoperability, and more scalable AI adoption for federal customers.

Read more: AP News

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