Parsons to acquire QRC for $215M
Parsons announced that it has entered into an agreement to acquire QRC, from private equity firm DC Capital Partners, for $215M in cash. The strategic acquisition is Parsons' first as a public company and its third acquisition in the past 14 months. Parsons plans to leverage its existing artificial intelligence and data analytics core competencies to further differentiate QRC's product portfolio and expedite actionable intelligence for its customers. QRC is a product company headquartered in Fredericksburg, Va., that specializes in radio frequency spectrum survey, record and playback; signals intelligence; and electronic warfare missions for the U.S. Special Operations Command, U.S. Intelligence Community, U.S. Navy, U.S. Marine Corps and international customers. The transaction is valued at approximately $185M, including the net present value of a $30M transaction-related tax benefit. For 2020, QRC is expected to generate approximately $56M in revenue and $18M in EBITDA before considering any revenue or cost synergies. The transaction is expected to be accretive to 2020 EPS excluding one-time transaction costs. Parsons was advised by Goldman Sachs & Co and Latham & Watkins. QRC was advised by Arnold & Porter Kaye Scholer.