Parsons acquires Chesapeake Technologies in $89M transaction

Parsons Corp. has acquired Chesapeake Technology International, an integrator of software for defense and intelligence agencies, in a transaction announced Tuesday being valued at $89 million.

CTI opened for business in 2000 to focus on cybersecurity and signals intelligence offerings that can be deployed into open architecture environments. The idea has been to help customers adopt converged software solutions, which incorporate functions from different offerings.

But the electromagnetic spectrum, or what CTI calls the “invisible battlefield,” is where the company has spent a bulk of its time and energy in. CTI’s technology products for that aspect of military operations include systems for communications, navigation, sensors and surveillance.

“CTI’s spectrum dominance solutions strengthen our portfolio and position us to capture a larger share of the full-spectrum operations market, which is poised for increased government funding due to evolving near-peer threats,” Parsons’ chief executive Carey Smith said in a release.

Through this transaction, Parsons also is looking to enhance its positioning with Trump administration spending priorities involving special operations forces and the Indo-Pacific region.

Approximately 225 CTI employees are poised to join Parsons’ intelligence and intelligence unit with 87% of the staff holding security clearances.

Prince Frederick, Maryland-headquartered CTI has been backed by the private equity firm Bluestone Investment Partners since 2021. Parsons expects the CTI business to post 2026 revenue of approximately $89 million.

Raymond James acted as financial adviser to Parsons.