Parsons Corporation Acquires BlackSignal Technologies for $200 Million

Parsons acquires BlackSignal for $200 million By Investing.com

CHANTILLY, Va. - Parsons Corporation (NYSE:PSN) has completed its acquisition of BlackSignal Technologies, LLC, a company specializing in artificial intelligence and machine learning for signal processing, for $200 million. The transaction, which was finalized today, aims to bolster Parsons' capabilities in cyber and electronic warfare, particularly within the Department of Defense and Intelligence Community sectors. BlackSignal, previously a Razor's Edge portfolio company, is known for its innovative signal processing techniques that leverage artificial intelligence to detect and disrupt command and control systems. With this acquisition, Parsons expects to enhance its positioning in the rapidly growing markets of cyber and electronic warfare, which are projected to expand by more than 10% annually. The integration of BlackSignal into Parsons' Defense & Intelligence business unit aligns with the company's strategic focus on acquiring high-growth entities. BlackSignal's expertise in full-spectrum cyber solutions, space-based signal processing, and tactical communication systems is anticipated to contribute to Parsons' revenue growth and adjusted EBITDA margins. Headquartered in Chantilly, Virginia, BlackSignal has established a reputation for addressing national security challenges with differentiated solutions, particularly in the face of near-peer threats. Parsons, a disruptive technology provider in national security and infrastructure markets, expects this acquisition to further enhance its service offerings across various domains, including space and missile defense, transportation, and critical infrastructure protection. The financial details of the transaction reveal a strategic move by Parsons to invest in companies with strong growth potential and high-profit margins. The company's broader strategy involves enhancing its national security and defense capabilities, as outlined on its website. This acquisition comes amidst a competitive landscape where government spending on private contractors is heavily scrutinized, and the ability to secure and maintain government contracts is crucial for companies like Parsons. The company emphasizes that forward-looking statements related to this acquisition are subject to risks and uncertainties and should not be relied upon as guarantees of future performance. The information regarding this acquisition is based on a press release statement issued by Parsons Corporation. In other recent news, Tutor Perini (NYSE:TPC) Corporation has secured a $1.66 billion contract from the Honolulu Authority for Rapid Transportation to work on a rail project in Honolulu, Hawaii. The contract includes the design and build of six rail stations and an elevated rail guideway, with Parsons Corporation serving as the design subcontractor. The project is expected to be incorporated into Tutor Perini's backlog in the third quarter of 2024, potentially boosting the company's future revenue projections. In recent developments, Parsons Corporation has reported a significant rise in its second-quarter financial performance for 2024, with record revenue of $1.7 billion and adjusted EBITDA of $150 million. The company has also expanded its portfolio through the acquisition of BlackSignal Technologies, which is expected to enhance its capabilities in cyber operations and electronic warfare. Financial analysis firm, Benchmark, has upgraded its price target for Parsons Corporation to $101, maintaining a "Buy" rating on the stock. This new price target is based on a forecasted fiscal year 2025 enterprise value to EBITDA for Parsons Corporation. The company's engagement with the Infrastructure Investment & Jobs Act is expected to provide more stable long-term support for its projects. As Parsons Corporation (NYSE:PSN) solidifies its position in the defense and intelligence sectors with the recent acquisition of BlackSignal Technologies, the company's financial metrics provide insight into its market standing and future prospects. According to real-time data from InvestingPro, Parsons has a market capitalization of approximately $9.88 billion. The company's Price/Earnings (P/E) ratio stands at a lofty 181.75, while the adjusted P/E ratio for the last twelve months as of Q2 2024 has moderated to 71.04. This indicates a significant expectation of growth in earnings, reflected in the company's revenue growth of 28.35% over the same period. InvestingPro Tips further reveal that analysts are optimistic about Parsons' financial performance, with nine analysts revising their earnings upwards for the upcoming period. This suggests confidence in the company's ability to capitalize on its recent acquisition and expand its market share. Additionally, the company's stock is currently trading near its 52-week high, which is a testament to the strong return on investment Parsons has provided over the last year, with a one-year price total return of 67.55%. For investors interested in deeper analysis, there are additional InvestingPro Tips available that could provide more nuanced insights into Parsons' performance and potential investment opportunities. These tips can be accessed through the dedicated InvestingPro platform for Parsons Corporation at https://www.investing.com/pro/PSN.

Parsons Completes Acquisition of BlackSignal Technologies - Parsons (NYSE:PSN)

CHANTILLY, Va., Aug. 16, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation PSN announced today that it completed the previously announced acquisition of BlackSignal Technologies, LLC, a Razor's Edge portfolio company, for $200 million. The strategic acquisition expands Parsons' customer base across the Department of Defense and Intelligence Community and significantly strengthens 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. Headquartered in Chantilly, Va., BlackSignal's culture of innovation and disruption delivers differentiated solutions to address national security challenges related to near-peer threats for the Defense Department and Intelligence Community. The company's space, cyber, electronic warfare, and digital signal processing capabilities include full-spectrum cyber solutions and tool development; space-based, artificial intelligence-enhanced signal processing; and tactical communication and intelligence systems. 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. To learn more about Parsons' national security and defense capabilities, please visit https://www.parsons.com/national-security/. About Parsons Parsons PSN is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure protection. Please visit parsons.com and follow us on LinkedIn and Facebook to learn how we're making an impact. This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: any issue that compromises our relationships with the U.S. federal government or its agencies or other state, local, or foreign governments or agencies; any issues that damage our professional reputation; changes in governmental priorities that shift expenditures away from agencies or programs that we support; our dependence on long-term government contracts, which are subject to the government's budgetary approval process; the size of our addressable markets and the amount of government spending on private contractors; failure by us or our employees to obtain and maintain necessary security clearances or certifications; failure to comply with numerous laws and regulations; changes in government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations, and programs in a manner adverse to us; the termination or nonrenewal of our government contracts, particularly our contracts with the U.S. federal government; our ability to compete effectively in the competitive bidding process and delays, contract terminations, or cancellations caused by competitors' protests of major contract awards received by us; our ability to generate revenue under certain of our contracts; any inability to attract, train, or retain employees with the requisite skills, experience, and security clearances; the loss of members of senior management or failure to develop new leaders; misconduct or other improper activities from our employees or subcontractors; our ability to realize the full value of our backlog and the timing of our receipt of revenue under contracts included in backlog; changes in the mix of our contracts and our ability to accurately estimate or otherwise recover expenses, time and resources for our contracts; changes in estimates used in recognizing revenue; internal system or service failures and security breaches; and inherent uncertainties and potential adverse developments in legal proceedings, including litigation, audits, reviews, and investigations, which may result in materially adverse judgments, settlements, or other unfavorable outcomes. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption "Risk Factors" in our Registration Statement on Form S-1 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws. Bryce McDevitt +1.703.851.4425 [email protected] Investor Relations Contact: Dave Spille + 1.571.655.8264 [email protected] Market News and Data brought to you by Benzinga APIs