This deal is valued at $203 million, or roughly 11.5x BlackHorse’s estimated 2022 adjusted EBITDA, the buyer says.
Parsons typically acquires companies that have revenue growth and adjusted EBITDA margins exceeding 10%, respectively, the buyer says.
Parsons and BlackHorse: Potential Synergies
Parsons (NYSE: $PSN) is a technology provider in the global defense, intelligence, and critical infrastructure markets. The company’s areas of expertise span cybersecurity, missile defense, space, connected infrastructure, and smart cities.
BlackHorse, which has nearly 200 employees, will tuck into Parsons’ federal solutions business segment.
BlackHorse’s technology unifies cyber, electromagnetic warfare, and information operations for DoD and and intelligence community customers, the seller says.
BlackHorse also provides autonomous and distributed detection, identification, exploitation, and the “defeat of today’s most complex communications,” the seller asserts.
In a prepared statement about the deal, Chuck Harrington, Parsons’ chairman and CEO, said:
“Adding BlackHorse increases our scale in the areas of cyber, electronic warfare, and information dominance, enhancing Parsons’ position to pursue and win upcoming large joint all-domain contract opportunities, which is a key component of our national defense strategy. We have partnered closely with BlackHorse in the past, so we know our cultures are well aligned and are excited to welcome their talented team of employees to the Parsons’ family and leverage their exceptional reputation in the market.”
Added Mike Kushin, BlackHorse president and CEO:
“We are thrilled to join the Parsons family. We share a common passion for supporting our nation’s most pressing security challenges, and joining forces continues that tradition while accelerating our growth and expanding our customer base. I’m excited for what the future holds.”
The deal is expected to close in July 2021.
Parsons Business Performance
Parson’s total revenue was $875 million in the first quarter of 2021, down 10 percent from Q1 of 2020. The decrease was “primarily driven by $64 million of contract work impacted by the COVID-19 pandemic and lower pass-through revenue,” the company said in a May 2021 earnings statement.