Parsons (NYSE:PSN) acquired Maryland-based cyber and technology company Sealing Technologies for $200M.
Parsons is paying $175M of cash at closing for SealingTech, with an additional $25M earn out payable in Q1 2025 if certain revenue targets are met during 2024.
After factoring in a $21M transaction-related tax benefit, the base purchase price implies a 10x multiple on SealingTech’s forecasted 2023e adjusted EBITDA before considering any revenue or cost synergies.
Parsons (PSN) estimates SealingTech will generate $110M revenue in 2024 and that the transaction will be accretive to Parsons’ fiscal year 2024 revenue growth rate, adjusted EBITDA margin, and adjusted EPS.
SealingTech is headquartered in Columbia, Maryland and the acquisition expands Parsons’ customer base across the Department of Defense and Intelligence Community, and further enhances the company’s capabilities in defensive cyber operations.