Parsons Completes Acquisition of BlackSignal Technologies
Rhea-AI Summary
Parsons (NYSE:PSN) has completed the acquisition of BlackSignal Technologies, for $200 million. This strategic move enhances Parsons' capabilities in cybersecurity, electronic warfare, and artificial intelligence. BlackSignal specializes in using AI and machine learning for innovative signal processing techniques to detect and disrupt command and control systems.
The acquisition expands Parsons' customer base in the Department of Defense and Intelligence Community, strengthening its position in full-spectrum cyber and electronic warfare. It also adds new capabilities in the counterspace radio frequency domain, markets expected to grow over 10% annually with double-digit margin expectations. BlackSignal will be integrated into Parsons' Defense & Intelligence business unit.
Positive
- Acquisition expands customer base across Department of Defense and Intelligence Community
- Strengthens positioning in full-spectrum cyber and electronic warfare
- Adds capabilities in counterspace radio frequency domain, expected to grow >10% annually
- BlackSignal's revenue growth >10% with double-digit adjusted EBITDA margins
- Enhances Parsons' AI, machine learning, and signal processing capabilities
Negative
- Significant cash outlay of $200 million for the acquisition
Insights
The $200 million acquisition of BlackSignal Technologies by Parsons (NYSE:PSN) is a strategic move that could significantly impact Parsons' market position. With BlackSignal's expertise in cybersecurity, electronic warfare and AI, Parsons is poised to expand its footprint in high-growth markets expected to see
BlackSignal's innovative use of AI and machine learning for signal processing is a game-changer in the cybersecurity and electronic warfare domains. Their ability to detect and disrupt hard-to-access command and control systems gives Parsons a significant technological edge. The acquisition brings cutting-edge capabilities in counterspace radio frequency, a critical area as space becomes an increasingly contested domain. BlackSignal's full-spectrum cyber solutions and space-based, AI-enhanced signal processing could potentially revolutionize Parsons' offerings. This technological boost could lead to increased competitiveness in bidding for high-value defense and intelligence contracts, potentially driving long-term growth for Parsons in the rapidly evolving national security technology landscape.
This acquisition positions Parsons strategically in the burgeoning cybersecurity and electronic warfare markets. The anticipated
Acquisition enhances Parsons’ cybersecurity, electronic warfare, and artificial intelligence capabilities
CHANTILLY, Va., Aug. 16, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE:PSN) announced today that it completed the previously announced acquisition of BlackSignal Technologies, LLC, a Razor’s Edge portfolio company, for
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
To learn more about Parsons’ national security and defense capabilities, please visit https://www.parsons.com/national-security/.
About Parsons
Parsons (NYSE: 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.
Forward-Looking Statements
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.
Media Contact:
Bryce McDevitt
+1.703.851.4425
Bryce.McDevitt@parsons.com
Investor Relations Contact:
Dave Spille
+ 1.571.655.8264
Dave.Spille@parsons.us
FAQ
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