Parsons Corp. [PSN] on Wednesday said it has acquired Sealing Technologies, inc. for upward of $200 million in a deal that strengthens its capabilities in defensive cyber operations and expands its customer base within the Defense Department and intelligence community.

Deal terms include $175 million in cash and a potential $25 million earnout provision if SealingTech meets certain sales targets in 2024. SealingTech, which is based in Columbia, Md., is expected to have around $110 million in sales in 2024.

“The addition of SealingTech is a natural extension of our growth strategy, adding critical, mission-ready solutions for our Department of Defense and intelligence community customers,” Carey Smith, chairwoman, president, and CEO of Parsons, said in a statement. “SealingTech’s defensive cyber capabilities complement our leading offensive cyber capabilities and increase our share in the full-spectrum cyber operations market, which is expected to receive more government funding because of accelerating and evolving cyber threats.”

In addition to defensive cyber, SealingTech has capabilities in artificial intelligence and machine learning mission solutions, edge computing and edge access modernization, critical infrastructure protection, and secure data management.

Jefferies aerospace and defense analyst Sheila Kahyaoglu in a client note pointed out that Parsons at its investor day in March estimated the cyber and intelligence market at $13.5 billion and expanding between 5 and 6 percent compounded annually over the next three years. Cyber is currently about $400 million of Parson’s annual sales, 75 percent of which is related to offensive cyber work, she said.

SealingTech is a prime contractor on more than 90 percent of its federal contracts. The company has nearly 150 employees, 70 percent of whom hold security clearances.

Parsons said the acquisition will be accretive to its adjusted earnings in 2024. The company also said its latest acquisition is consistent with its strategy of accretive deals that have sales and adjusted operating margins above 10 percent. SealingTech will be aligned to Parson’s Defense & Intelligence business unit.

Parsons said that the acquisition includes a $21 million transaction-related benefit.

SealingTech’s financial adviser on the transaction was Chesapeak Corporate Advisors and Parsons was advised by Barclays.