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CHANTILLY, Va. - Parsons Corporation (NYSE:PSN), a $7.67 billion market cap defense technology company with "GREAT" financial health according to InvestingPro, has acquired Maryland-based Chesapeake Technologies International (CTI) for $89 million, the company announced Tuesday.
The acquisition strengthens Parsons’ position in electromagnetic warfare and all-domain solutions for the U.S. defense market, particularly with Special Operations forces and in the Indo-Pacific Command area of operations.
CTI, founded in 2000 and headquartered in Prince Frederick, Maryland, brings approximately 225 employees to Parsons, with 87 percent holding security clearances. The company specializes in developing technology solutions for military applications, with expertise in electromagnetic spectrum, cyberspace, autonomous systems, and special communications.
"Acquiring CTI is a logical addition to our growth strategy, enhancing our mission-ready solutions for the Department of Defense," said Carey Smith, chair, president, and CEO of Parsons.
Dustan Hellwig, co-founder and chief strategy officer of CTI, stated, "Our cultures are deeply aligned, focusing on relentless innovation and a commitment to enhancing capabilities that directly support the mission of those who protect our freedoms."
The transaction is valued at approximately 10 times CTI’s estimated 2026 adjusted EBITDA. CTI is expected to generate revenue of approximately $89 million in 2026. Parsons expects the acquisition to be accretive to its fiscal year revenue growth rate, adjusted EBITDA margin, and adjusted diluted earnings per share. With moderate debt levels and trading near its Fair Value, Parsons demonstrates strong financial discipline in this acquisition. Get deeper insights into Parsons’ valuation and 7 additional key ProTips with InvestingPro.
CTI will be integrated into Parsons’ Defense & Intelligence business unit, according to the company’s press release statement.
Raymond James served as financial advisor to Parsons for the transaction.
In other recent news, Parsons Corporation has announced several significant developments. The company reported a $169.5 million contract awarded by the United States Army Corps of Engineers to build a new Ammonium Nitrate Solution Tank Farm at the Holston Army Ammunition Plant. This four-year project is part of a broader initiative to modernize the U.S. Army’s industrial base. In collaboration with IBM, Parsons is also working to modernize the U.S. air traffic control system, a project initiated in response to calls from government leaders.
On the financial front, Parsons disclosed a reduction in its 2025 financial guidance due to uncertainties surrounding a classified contract with the U.S. State Department. This has led to adjustments in their adjusted EBITDA projections, now expected to be between $590 million and $630 million. Analysts from TD Cowen have maintained a Hold rating on Parsons stock, noting the potential impact of this reduction on future performance. Meanwhile, Benchmark analysts have reiterated a Buy rating, despite the guidance cut, maintaining a price target of $90.00. Truist Securities also reaffirmed its Buy rating, citing optimism in Parsons’ growth trajectory through 2025.
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