Parsons Seals The Deal For SealingTech To Bolster Its Capabilities In Defensive Cyber Operations

Parsons Corporation PSN has acquired Maryland-based cyber and technology company Sealing Technologies, Inc. in a transaction valued at up to $200 million.

Parsons will pay $175 million of cash at closing for SealingTech, with an additional $25 million earn-out payable in Q1 2025, if certain revenue targets are met during 2024.

Parsons estimates that SealingTech will generate $110 million of revenue in 2024, and the deal will be accretive to its fiscal year 2024 revenue growth rate, adjusted EBITDA margin, and adjusted earnings per share.

SealingTech is expected to expand Parsons' customer base across the Department of Defense and Intelligence Community. It will also enhance Parsons' capabilities in defensive cyber operations, integrated mission-solutions powered by artificial intelligence (AI) and machine learning (ML), edge computing and edge access modernization, critical infrastructure protection, and secure data management.

SealingTech's nearly 150 employees, 70% of whom hold security clearances, will be aligned to Parsons' Defense & Intelligence business unit.

"SealingTech's defensive cyber capabilities complement our leading offensive cyber capabilities and increase our share in the full-spectrum cyber operations market, which is expected to receive more government funding because of accelerating and evolving cyber threats," said Chairman, President and CEO Carey Smith.

Parsons held $178.6 million in cash and equivalents as of June 30, 2023.

Price Action: PSN shares are trading at $55.94 on the last check Wednesday.