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Parsons Strengthens Technical Capabilities Via This $400M Deal - Read More For Deails

Published 23/05/2022, 16:21
© Reuters.  Parsons Strengthens Technical Capabilities Via This $400M Deal - Read More For Deails
PSN
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  • Parsons Corp (NYSE: PSN) has agreed to acquire Reston, Virginia-based Xator Corp for $400 million.
  • Xator provides mission-focused solutions addressing critical infrastructure protection, national security, and mission training requirements for the U.S. Government worldwide.
  • Xator expands Parsons' customer base and brings differentiated technical capabilities in critical infrastructure protection, counter-unmanned aircraft systems (cUAS), intelligence and cyber solutions, biometrics, and threat assessment and operations.
  • The transaction is valued at ~$343 million, including the net present value of a $57 million transaction-related tax benefit, or ~10.7x Xator's estimated 2023 adjusted EBITDA.
  • By 2023, Xator is expected to generate ~$300 million in revenue. Parsons expects the transaction to be accretive to its 2023 adjusted EPS, revenue growth, and adjusted EBITDA margin and close later this quarter.
  • Xator will be integrated into Parsons' engineered systems business unit, leveraging its global capabilities across federal and critical infrastructure segments.
  • Parsons' held cash and equivalents of $286 million as of March 31, 2022.
  • Price Action: PSN shares are trading higher by 2.54% at $37.16 on Monday's last check.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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