Add-on Acquisition • Information Technology

Parsons Acquires Secure Mission Solutions

On April 18, 2014, Parsons acquired information technology company Secure Mission Solutions from RLH Equity Partners

Acquisition Context
  • This is Parsons’ 1st transaction in the Information Technology sector.
  • This is Parsons’ 4th transaction in the United States.
  • This is Parsons’ 2nd transaction in Virginia.

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M&A Deal Summary

Date April 18, 2014
Target Secure Mission Solutions
Sector Information Technology
Buyer(s) Parsons
Sellers(s) RLH Equity Partners
Deal Type Add-on Acquisition
Advisor(s) Houlihan Lokey (Financial)

Target Company

Secure Mission Solutions

Reston, Virginia, United States
Secure Mission Solutions for new strategic acquisitions in a high growth industry — Federal IT security. The Company protects the information systems and data of the Departments of Defense and Homeland Security, the intelligence community, and select civilian agencies against cyber attacks, theft, and physical damage. SMS is one of the largest pure play providers of network-enabled security services to the federal government.
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Buyer Overview 1

Buyer

Parsons

Pasadena, California, United States

Category Company
Founded 1944
Sector Engineering
DESCRIPTION
Parsons office in Columbia, Maryland.
Parsons office in Columbia, Maryland.

Parsons is an engineering and construction company with a focus on transportation, environmental/infrastructure, defense/security, and resources. The Company provides a variety of design, design-build, construction management, and other professional services packaged in alternative delivery methods to federal, regional, and local government agencies, as well as to private industrial customers worldwide. Parsons was formed in 1944 and is based in Pasadena, California.


Deal Context for Buyer #
Overall 5 of 20
Sector: Information Technology 1 of 9
Type: Add-on Acquisition 5 of 19
State: Virginia 2 of 7
Country: United States 4 of 19
Year: 2014 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-01 Delcan

Markham, Ontario, Canada

Delcan Corp. is an international multidisciplinary engineering, planning, management, and technology firm that provides a broad range of integrated systems and infrastructure solutions to the transportation market. Delcan Corp. was founded in 1953 and is based in Markham, Ontario.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-03-02 T.J. Cross Engineers

Bakersfield, California, United States

T.J. Cross Engineers, Inc. is an oil and gas industry professional services firm specializing in engineering, design, and consulting services. T.J. Cross Engineers, Inc. was founded in 1990 and is based in Bakersfield, California.

Buy -

Seller Profile 1

SELLER

RLH Equity Partners

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1982
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

RLH Equity Partners is a private equity firm that targets investments in middle-market companies throughout North America. RLH look for market leaders generating sales of $25 to $200 million with high growth potential. General areas of interest include business services (including IT services), high value-added manufacturing, specialty distribution, healthcare, and financial services. The Firm invests in the range of $30 to $100 million per transaction. Prospective transaction situations include growth equity financings, shareholder liquidity, recapitalizations, and management buyouts. RLH Equity Partners was formed in 1982 and is based in Los Angeles, California.


Deal Context for Seller #
Overall 13 of 23
Sector: Information Technology 4 of 7
Type: Add-on Acquisition 6 of 13
State: Virginia 1 of 1
Country: United States 13 of 23
Year: 2014 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-12-02 CyberCoders

Irvine, California, United States

CyberCoders is a recruiting firm focused on filling mid-level professional, technical, sales, and operational positions on a contingency fee basis.

Sell $105M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-14 Cymetrix

Irvine, California, United States

Cymetrix is a provider of outsourced business services to major for-profit, faith-based, and community hospital systems. The Company helps its clients improve speed, accuracy, and effectiveness at each stage in the hospital revenue cycle, including gathering patient data, coding medical records, and collecting receivables.

Sell $100M