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Parsons Corporation (NYSE:PSN) announced today that it has entered into a definitive agreement to acquire BlackSignal Technologies, LLC, a Razor's Edge portfolio company, in an accretive deal valued at $200 million. Parsons anticipates that the acquisition will close in August 2024.
BlackSignal is a next-generation digital signal processing, electronic warfare, and cybersecurity provider built to counter near-peer threats. This acquisition will expand Parsons' customer base across the Department of Defense and Intelligence Community and significantly strengthen Parsons' positioning with full-spectrum cyber and electronic warfare, while adding new capabilities in the counterspace radio frequency domain: markets anticipated to grow more than 10% annually with double digit margin expectations. BlackSignal uses artificial intelligence and machine learning to create innovative signal processing techniques that detect and disrupt difficult-to-access command and control systems and platforms.
The transaction is consistent with Parsons' strategy of acquiring high-growth companies with greater than 10% revenue growth and adjusted EBITDA margins. BlackSignal will be integrated into Parsons' Defense & Intelligence business unit.
The $200 million cash purchase price represents a 10.5x multiple on the forecasted 2025 EBITDA before considering revenue or cost synergies. Parsons expects that BlackSignal will generate approximately $95m of revenue in 2025e and be accretive to Parsons' revenue growth, adjusted EBITDA margins, and adjusted EPS. The transaction is expected to close in August 2024, subject to customary closing conditions. Parsons was advised by Raymond James and BlackSignal was advised by Baird.
Posted In: PSN
