Parsons Corp. has acquired cyber and technology company Sealing Technologies, Inc., in a transaction valued at up to $200 million.
“The addition of SealingTech is a natural extension of our growth strategy, adding critical, mission-ready solutions for our Department of Defense and Intelligence Community customers,” said Carey Smith, Parsons chair, president and CEO.
This deal enhances Parsons’ capabilities in defensive cyber operations; integrated mission-solutions powered by artificial intelligence and machine learning; edge computing and edge access modernization; critical infrastructure protection; and secure data management.
“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,” Smith said.
The transaction also falls under Parsons’ strategy of completing accretive acquisitions of companies with revenue growth and adjusted EBITDA margins over 10%, while strengthening the company’s existing portfolio.
The Maryland-based company has 150 employees, 70% with security clearances, and will be aligned to Parsons’ Defense & Intelligence business unit. Its capabilities will be leveraged across Parsons’ Federal Solutions and Critical Infrastructure segments, customers and projects.
“Their mission-focused approach and passion for delivering impactful solutions for our nation’s most pressing security challenges aligns seamlessly with Parsons’ business and culture,” Smith added. “I look forward to welcoming this talented team of employees into the Parsons’ family as we collectively imagine next.”
SealingTech also delivers cybersecurity solutions across defensive cyber operations, critical infrastructure network protection and secure data management. The company is prime contractor on over 90% of its federal contracts.
“This partnership is the perfect next step in the future of our two companies,” said Edward Sealing, CEO of SealingTech. “There is complete alignment with our culture and values, and we share a common passion for supporting our nation’s most pressing security challenges while promoting a people-first culture. I believe the combination of our capabilities will be a force multiplier for our warfighters and accelerate our business growth and expand our customer base. I am excited about our future together and to become part of the Parsons team.”
Parsons is paying $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.
Barclays was the financial advisor and Jenner & Block was legal advisor to Parsons. SealingTech was advised by Chesapeake Corporate Advisors and Nemphos Braue, LLC.