Parsons Corporation has entered into a definitive agreement to acquire BlackHorse Solutions, Inc. in an accretive deal valued at $203 million. Founded in 2018, BlackHorse expands Parsons’ customer base and brings differentiated best-in-class capabilities in cyber, digital operations, artificial intelligence/machine learning, and full-spectrum operations.
BlackHorse will be integrated into Parsons’ federal solutions business segment, adding nearly two hundred employees, the predominance of which hold high-level security clearances.
“Adding BlackHorse increases our scale in the areas of cyber, electronic warfare, and information dominance, enhancing Parsons’ position to pursue and win upcoming large joint all-domain contract opportunities, which is a key component of our national defense strategy,” said Chuck Harrington, Parsons’ chairman and chief executive officer.
BlackHorse unifies cyber, electromagnetic warfare, and information operations for Department of Defense and Intelligence Community customers. The company also provides autonomous and distributed detection, identification, exploitation, and the defeat of today’s most complex communications.
The transaction is valued at $203 million, or approximately 11.5x BlackHorse’s estimated 2022 adjusted EBITDA. For 2022, BlackHorse is expected to generate revenue of approximately $100 million. The company expects the transaction to be accretive to Parsons’ fiscal year 2021 and 2022 revenue growth rate, adjusted EBITDA margin, and adjusted diluted earnings per share. The transaction is expected to close in July 2021, subject to customary closing conditions. Parsons was advised by Baird and Latham & Watkins LLP. BlackHorse was advised by Raymond James & Associates, Inc. and Cooley LLP.