US-based federal contractor Parsons has completed the acquisition of Xator, a mission-focused solutions provider to government clients.
The transaction is valued at $400m.
The acquisition will see Parsons widen its position in the US Special Operations Command, the Intelligence Community, and infrastructure space.
It is also expected to provide the company with new customer access at the Department of State.
According to the company, the acquisition will add vital intellectual property and boost its portfolio.
Headquartered in Reston, Virginia, Xator works on command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) solutions.
Xator will be attached to Parsons’ engineered systems unit.
This will enable Parsons to strengthen its technical capabilities in the fields of counter-uncrewed aircraft systems (cUAS), intelligence and cyber solutions, and global threat assessment.
By 2023, Xator is expected to generate over $300m in revenue. The acquisition, including the net present value of $57m transaction-related tax benefit, is valued at nearly $343m.
Parsons offers various capabilities across cybersecurity, missile technology, transportation water treatment and more.
The company’s earlier acquisitions include Echo Ridge, BlackHorse Solutions, Braxton Science & Technology Group, QRC Technologies, OGSystems, among others.
In December 2021, Parsons won a task order on the US Army’s responsive strategic sourcing for services (RS3) contract.
The $38m order requires Parsons to provide tactical applications core infrastructure, utilities, and integration services.