Advertisement

Header Utility Menu

  • Subscribe
  • Advertise
  • Contact Us
  • Events

LinkedIn Facebook Twitter Instagram Get Our App

  • Login

Virginia Business

Mobile Menu

  • Issues
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Order a copy
    • Buy an award plaque
    • Suggest execs for 2022

Advertisement

Header Primary Menu

  • Issues
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • Issues Archive
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Order a copy
    • Buy an award plaque
    • Suggest execs for 2022

Home News Industries Federal Contracting Parsons to acquire Xator for $400M

Parsons to acquire Xator for $400M

Reston contractor will add 900 to Parsons' 16,000 workers

Published May 23, 2022 by Richard Foster

Carey Smith, CEO of Parsons Corp.

Parsons Corp., a Centreville-based federal contractor specializing in technology-focused defense, intelligence, security and infrastructure engineering, has entered into a definitive agreement to acquire Reston-based Xator Corp. for $400 million, the company announced Monday.

Founded in 1944, Parsons is a publicly traded Fortune 1000 corporation with more than 16,000 employees working in 24 nations. It posted $3.6 billion in 2021 revenue. Xator, a privately held federal contractor with more than 900 workers, was co-founded in 2005 by Jerry Pfeiffer and David Scott, who has served as the company’s CEO since 2011. The company is expected to generate approximately $300 million in revenue in 2023.

The acquisition, which is expected to close by June 30, will add to Parsons’ client base the U.S. Department of State, which is expected to be a growth area. Xator will also expand Parsons’ business with the U.S. Special Operations Command, the intelligence community, federal civilian agencies customers and global critical infrastructure markets, according to a news release.

“The addition of Xator is a natural extension of our growth strategy, adding important solutions and technologies that advance global security and protect critical infrastructure during a time of increasing and evolving threats,” said Parsons Chair, President and CEO Carey Smith in a statement. “This acquisition strengthens our position across our two complementary markets and continues our strategy of buying accretive, mission-focused companies aligned with global macroeconomic trends. I look forward to welcoming Xator’s talented team of more than 900 employees to the Parsons family as we collectively create the future.”

The $400 million transaction includes the net present value of a $57 million transaction-related tax benefit, or approximately 10.7 times Xator’s estimated 2023 adjusted EBITDA. Parsons was advised on the deal by Goldman Sachs & Co. LLC and Latham & Watkins LLP. Xator was advised by Rees Broome PC.

Xator addresses critical infrastructure protection, national security and mission training requirements for U.S. government agencies worldwide. It specializes in C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance), national security and intelligence solutions.

“Xator was built on a commitment to the customer’s mission and support for the professional development of our employees. Today we are excited to announce the combination with Parsons — a company that shares our passion for supporting our customers’ mission and is recognized consistently as a top employer,” Scott, Xator’s CEO, said. “The joining of Parsons’ impressive capabilities in infrastructure and national security solutions, along with Xator’s capabilities in infrastructure protection, engineering, C4ISR and national security will be a competitive force in the global infrastructure and national security markets.”

 

 

  Subscribe to Virginia Business. Get our daily e-newsletter.

Related Stories

Virginia Business logo

Maximus acquires Houston veterans services company for $1.4B

VES conducts medical disability exams for veterans

Virginia Business logo

Leidos completes $380M Gibbs & Cox acquisition

Gibbs & Cox's specialties include naval architecture, marine engineering

Virginia Business logo

Octo acquires Volant Associates, creating new division

Volant specializes in defense technology integration and software development

Trending

Va. Beach native to lead Navy Region Mid-Atlantic

Williamsburg apartments sell for $100M

Sentara taps new president and CEO

Amtrak to boost service in Norfolk, Roanoke, Newport News

Barkin: Inflation high, but Fed has tools to contain it

Sponsored Stories

What can Supply Chain Consultants do for me?

The Lowdown on Downloads for Your Online Experience

5 Benefits of Treasury Management Services from Atlantic Union Bank

Creating An Urban Destination in Chesapeake

Advertisement

Advertisement

Trending

Va. Beach native to lead Navy Region Mid-Atlantic

Williamsburg apartments sell for $100M

Sentara taps new president and CEO

Amtrak to boost service in Norfolk, Roanoke, Newport News

Barkin: Inflation high, but Fed has tools to contain it

Sponsored Stories

What can Supply Chain Consultants do for me?

The Lowdown on Downloads for Your Online Experience

5 Benefits of Treasury Management Services from Atlantic Union Bank

Creating An Urban Destination in Chesapeake

Get Virginia Business directly on your tablet or in your mailbox!

Subscribe to Virginia Business

Advertisement

Advertisement

Footer Primary Menu

  • virginiabusiness.com
  • Subscribe
  • Advertise
  • About Us
  • Contact Us

Footer Secondary Menu

  • Industries
  • Regions
  • Reports
  • Company News
  • Events

Sign Up For Our Newsletter

Sign Up

LinkedIn Facebook Twitter Instagram Get Our App

Privacy Policy Cookie Policy

Footer Utility Menu

Copyright © 2022 Virginia Business. All rights reserved.

Site Maintained by TechArk

wpDiscuz