CHANTILLY, Va. - Parsons Corporation (NYSE:PSN), a technology provider in the defense and infrastructure markets, has completed the acquisition of BCC Engineering, LLC, a transportation engineering firm based in Florida. The all-cash deal, valued at $230 million, was finalized today, expanding Parsons' infrastructure capabilities in the Southeastern United States.
BCC Engineering, previously a portfolio company of Trivest Partners, specializes in planning, design, and management services for transportation, civil, and structural engineering projects across Florida, Georgia, Texas, South Carolina, and Puerto Rico. This strategic acquisition is set to bolster Parsons' position as a leader in infrastructure, coinciding with the region's significant federal investment through the Infrastructure Investment and Jobs Act, which allocated approximately $100 billion for highway projects from 2022 to 2026.
The transaction aligns with Parsons' growth strategy, targeting companies with over 10% revenue growth and strong adjusted EBITDA margins. BCC will be integrated into Parsons' North America Infrastructure business unit, enhancing the company's service offerings and market reach.
Parsons, headquartered in Chantilly, Virginia, is recognized for its contributions in various sectors, including cyber and intelligence, space and missile defense, environmental remediation, and urban development. The acquisition of BCC Engineering is expected to complement these areas by adding expertise and expanding the company's geographical footprint in a region poised for growth due to federal infrastructure funding.
The information in this article is based on a press release statement from Parsons Corporation.
In other recent news, Parsons Corporation has been making significant strides in its financial performance. The company reported record third-quarter results, with revenues hitting $1.8 billion, marking a 28% increase year-over-year. This robust growth was accompanied by a 31% rise in adjusted EBITDA, leading the company to raise its full-year guidance for both revenue and adjusted EBITDA.
Parsons Corporation's Federal Solutions segment saw a notable 42% increase in revenue, while the Critical Infrastructure segment grew by 10%. Jefferies maintained a Buy rating on Parsons Corp ., increasing the price target to $130.00 from the previous $125.00, based on the company's year-to-date organic growth and future revenue prospects.
The company's financial position is further bolstered by a $9 billion backlog and a $13 billion unbooked pipeline. Despite a $23.5 million write-down, Parsons Corporation is transitioning away from legacy contracts to focus on core design and program management roles. Furthermore, the company has raised its fiscal 2024 guidance, expecting revenue to fall between $6.6 billion and $6.8 billion, and adjusted EBITDA to be between $590 million and $620 million.
InvestingPro Insights
Parsons Corporation's acquisition of BCC Engineering aligns well with its growth trajectory, as evidenced by recent financial data and analyst projections. According to InvestingPro data, Parsons has demonstrated strong revenue growth, with a 28.88% increase in the last twelve months as of Q3 2024. This growth is expected to continue, with InvestingPro Tips indicating that analysts anticipate sales growth in the current year.
The company's strategic move into the Southeastern United States infrastructure market is timely, given the significant federal investment in the region. This expansion could contribute to Parsons' already impressive financial performance. InvestingPro data shows that Parsons' stock has seen a substantial 77.11% price total return over the past year, reflecting investor confidence in the company's growth strategy.
Parsons' ability to execute such acquisitions is supported by its solid financial position. An InvestingPro Tip notes that the company's liquid assets exceed short-term obligations, suggesting a strong balance sheet that can accommodate growth initiatives like the BCC Engineering acquisition.
For investors seeking more comprehensive insights, InvestingPro offers 16 additional tips on Parsons Corporation, providing a deeper understanding of the company's financial health and market position.
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