Parsons to Acquire Braxton Science & Technology Group

Rhea-AI Summary

The O'Neil Group Company has announced a definitive agreement to sell Braxton Science & Technology Group to Parsons Corporation for approximately $300 million in cash. This sale represents the transfer of 5 of the 7 defense entities under OGC's management, highlighting its portfolio success. Since being acquired, Braxton has increased its employee count by over 300 and expanded its revenue by 25 times. The acquisition positions Parsons to enhance its capabilities in satellite operations and ground system automation for national security clients, particularly in low earth orbit missions.

Positive

• Sale of Braxton for approximately $300 million enhances Parsons' position in satellite operations.
• Braxton's revenue grew by 25 times since acquisition, indicating strong operational performance.
• The acquisition allows Parsons to capitalize on rapid market growth in space technology.

Negative

• None.

COLORADO SPRINGS, Colo., Oct. 30, 2020 /PRNewswire/ -- The O'Neil Group Company, LLC announced today that it has entered into a definitive agreement on behalf of investors to sell Braxton Science & Technology Group, LLC ("Braxton") and its subsidiaries for approximately $300 million in cash to Parsons Corporation (NYSE: PSN). Headquartered in Colorado Springs, CO, The O'Neil Group Company ("OGC") oversees a diversified portfolio of operating companies and real estate investments, which includes Braxton as a spotlight of its portfolio growth and success over the past decade-plus. The sale of Braxton encompasses 5 of the 7 defense entities making up the defense portion of businesses owned and managed by OGC. OGC will shift its resources to focus on continued growth and investment in businesses, real estate and the community in which it operates.

Braxton, headquartered at the Catalyst Campus for Technology & Innovation in downtown Colorado Springs, added more than 300 employees and grew revenue by 25 times since being acquired by the investment group coordinated by, and subsequently managed by, the O'Neil Group. "This was one of our better exits considering that the original investors realized a 9-times return on their investment," said Keven O'Neil, OGC's owner and CEO.

Braxton operates at the forefront of satellite operations, ground system automation, flight dynamics, and spacecraft and antenna simulation for the U.S. Department of Defense and Intelligence Community. These capabilities position Parsons to Capitalize on the quickly evolving space missions of its national security space customers and address rapid market growth driven by proliferated low earth orbit (LEO) constellations, small satellite expansion, and space cyber resiliency. Braxton has specific domain expertise with the U.S. Air Force's Enterprise Ground Services (EGS) effort: a next generation architecture that will unify spacecraft ground control operations across multiple major government agencies.

"The combination of Braxton's leading defense capabilities, and decades of trusted customer relationships, combined with Parsons' global scale, cross-industry experience, and disruptive mindset creates a leading space technology provider," said Ken O'Neil, President of Braxton. "We're excited to join an organization known for their entrepreneurial spirit, agility, culture of innovation and inclusivity, and successful track record of mergers, acquisitions, and integrations. Parsons is a large company with the operational agility of a smaller organization, which attracted us to them and gives us confidence in our future success together."

About the O'Neil Group Company:

At the O'Neil Group Company, we acquire businesses and grow their profitability for our individual and institutional investment partners. Our proven track record for success is born in part from our passion for business, deep market knowledge and our ability to see opportunities where others cannot.

Investor Relations Contact:
Patrick Stephens
+ 1 719-445-5054
Patrick.Stephens@theoneilgroupco.com

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SOURCE The O'Neil Group Company

FAQ

What is the value of the Parsons acquisition of Braxton Science & Technology Group?

Parsons is acquiring Braxton Science & Technology Group for approximately $300 million in cash.

How much has Braxton's revenue increased since its acquisition by the O'Neil Group?

Braxton's revenue increased by 25 times since being acquired by the O'Neil Group.

What capabilities does Braxton bring to Parsons?

Braxton provides expertise in satellite operations, ground system automation, and spacecraft simulation.

When was the acquisition of Braxton announced?

The acquisition of Braxton was announced on October 30, 2020.

How many employees did Braxton add since being managed by the O'Neil Group?

Braxton added over 300 employees since being managed by the O'Neil Group.