Parsons Corporation, after acquiring GSIF (Geospatial Intelligence Firm) OGSystems, is hunting for more firms to purchase. Its’ further acquisition would enhance its’ ranking among the companies in space technology.
The company completed its initial $534 million public offering in the month of May. During the firm’s 1st earning call after the offering on June 18, company’s CEO and chairman, Chuck Harrington, stated that their main focus would be M&A (Merger and Acquisition).
Harrington added that the company’s target would be to invest in the ground of M&A of firms that would fulfill their acquisition criteria of high margin, companies with higher intellectual properties in the market of space, defense, cyber, smart cities and ground work.
Parsons bought the OGSystems for $292 million which marked its venture into GSI (Geospatial Intelligence). The company’s brand new space presence was further expanded when the United States AFS (Air Force Space) and MSC (Missile Systems Center) provided a contract of nearly $100 million to deliver integration services to launch small satellites. Along with providing services to AFS, they will also serve for NASA, the NR (National Reconnaissance) and others.
The company consists of around 16,000 employees and has raised its manifestation in GSI, cloud computing and small satellites to enhance its business. Parsons recounted an increase of 20 % in its quarterly revenue attaining $900 million. This revenue growth was attributed to the procurement of the OGSystems and of Polaris Alpha, a defense contractor, worth $489 million.
The company’s adjusted EBITDA gradually grew to $64 million, accounting for 47% rise. The net debt of the company crawled down to $50 million from $538 million, after it used its profits from its public offering to pay debts.
Parsons’ CFO, George Ball, stated that paying off debts had enabled the company to invest in its strategy and its successful profit in the initial offering resulted in paying a bonus of $52 million to its shareholders.
The company has been expanding and is tracking contracts worth $100 million or more.