Parsons has acquired Chesapeake Technology International, a Bluestone Investment Partners portfolio company, for approximately $89 million as part of a push to expand its electromagnetic warfare and all-domain offerings for the U.S. defense market.
Parsons said Tuesday the transaction aligns with its strategy of broadening its portfolio of critical intellectual property and buying high-growth firms with at least 10 percent revenue growth and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA margins.
The acquisition could enable Parsons to expand its presence in the Indo-Pacific Command area of operations and strengthen its defense customer posture with Special Operations forces.
Expanding Defense Market Offerings With CTI’s Spectrum Dominance Tech
“Acquiring CTI is a logical addition to our growth strategy, enhancing our mission-ready solutions for the Department of Defense,” said Carey Smith, chair, president and CEO of Parsons.
“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. Their commitment to addressing our nation’s security challenges aligns perfectly with Parsons’ mission and culture. I welcome their talented team into the Parsons family as we imagine next, together,” added Smith, a seven-time Wash100 awardee and chair of Executive Mosaic’s 4×24 Group 1 Leadership.
CTI and its employees will be part of Parsons’ defense and intelligence business unit.
Parsons expects CTI to record about $89 million in 2026 revenue and be accretive to its fiscal revenue growth rate, adjusted diluted earnings per share and adjusted EBITDA margins.
Raymond James advised Parsons in the transaction.
What Does Bluestone Investment-Backed CTI Do?
Established in 2000, CTI develops and provides all-domain technologies designed to improve warfighters’ ability to detect, assess and deliver effects within the invisible battlespaces.
The Prince Frederick, Maryland-based company has more than 225 employees, and 87 percent of them hold security clearances.
CTI maintains expertise in cyberspace, electromagnetic spectrum, autonomous systems and special communications domains. It has transitioned prototype platforms to fielded systems in support of operational commands.
“We are excited to join forces with Parsons, an ongoing partnership that represents a shared vision for innovation and excellence in serving our nation’s warfighters,” said Dustan Hellwig, co-founder and chief strategy officer of CTI.
“Together, we will leverage our combined strengths to expand our customer base and deliver cutting-edge solutions that effectively address the evolving challenges faced by the Department of Defense,” Hellwig added.