Parsons (NYSE: PSN) has closed its purchase of Xator for approximately $400 million as part of efforts to expand its footprint within the Intelligence Community, U.S. Special Operations Command, federal civilian and critical infrastructure markets.
The transaction was first announced in May and Parsons said Wednesday it will integrate Xator into its engineered systems business unit.
Established in 2005, Xator is a Reston, Virginia-based provider of mission-focused platforms addressing mission and training, national security and critical infrastructure protection requirements of U.S. government clients.
Parsons said it expects the acquisition to broaden its addressable market in critical infrastructure and federal segments by gaining access to Xator’s technical capabilities in counter-unmanned aircraft systems, global threat assessment and operations, biometrics and intelligence and cyber platforms.
The deal aligns with Parsons’ strategy of strengthening its existing portfolio with additional intellectual property and acquiring companies with adjusted earnings before interest, taxes, depreciation and amortization margins of 10 percent or higher and revenue growth.