CACI International and Azure Summit Technology, two key companies in the defense sector, have recently announced a significant transaction.
CACI International, a major provider of professional services and information technology solutions, has entered into a definitive agreement to acquire Azure Summit Technology, a leader in radio frequency (RF) technology for the Department of Defense (DoD).
The acquisition, valued at $1.275bn in an all-cash transaction, is driven by CACI’s goal to augment its contributions towards national security. Azure Summit Technology brings to the table advanced capabilities in intelligence, surveillance, and reconnaissance (ISR), electronic warfare (EW), and signals intelligence (SIGINT), enhancing CACI’s offerings across various domains and customer sets.
CACI International is renowned for its distinctive expertise and technology aimed at addressing some of the most complex national security challenges. Azure Summit Technology specializes in high-performance RF technology, playing a crucial role in the electromagnetic spectrum operations essential for national defense.
The strategic acquisition is set to expand CACI’s market reach within the national security sector, offering new technologies and capabilities. John Mengucci, President and CEO of CACI, highlighted the alignment in technology and employee culture between the two companies, emphasizing the enhanced support for critical missions provided by this union.
Additional facets of this deal include its financial benefits; not only will it be immediately accretive to CACI’s financial metrics, but it also complements over $400m in share repurchases in recent times. This acquisition signifies a strategic and financial enhancement for CACI, aimed at bolstering long-term shareholder value.
John Mengucci also stressed the immediate operational benefits and the significant tax benefits expected from the transaction, estimating a $194m tax advantage over the next 15 years. The effective consideration, net of the tax benefit, stands at $1.08bn.
“CACI’s market-based strategy is significantly strengthened with the integration of Azure Summit’s core capabilities,” CACI President and Chief Executive Officer John Mengucci said. “In an environment of escalating global threats, the employees of both CACI and Azure Summit are culturally aligned and driven to support the most critical, sophisticated missions of our nation and our allies.”
“For our shareholders, the acquisition of Azure Summit is compelling both strategically and financially,” said Mengucci. “It not only enhances our offerings in areas of enduring national security priorities, but also brings with it an installed base of fielded, mature technology. And, from a financial standpoint, it will be immediately accretive across multiple financial metrics.”
“I am confident that CACI will offer outstanding career opportunities to our talented and dedicated employees,” said Azure Summit President and Chief Executive Officer Thomas Green. “The alignment between our cultures, technology and engineering heritage will drive continued innovation and growth under CACI leadership in the future. More importantly, our mission-focused customers will share the benefits from the combined business almost immediately.”
The deal is pending regulatory approvals and customary closing conditions, with closure expected in the second quarter of fiscal year 2025.
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