CACI International Inc (NYSE: CACI) announced today that it has entered into a definitive agreement to acquire Azure Summit Technology in an all cash transaction for $1.275 billion. In alignment with CACI’s mission to deliver distinctive expertise and differentiated technology to meet our customers’ greatest national security challenges, Azure Summit advances Department of Defense (DoD) mission outcomes with its portfolio of high-performance radio frequency (RF) technology and engineering talent focused on the electromagnetic spectrum.
“Azure Summit’s core capabilities and technology bolster CACI’s market-based strategy by expanding our offerings in intelligence, surveillance and reconnaissance (ISR), electronic warfare (EW), and signals intelligence (SIGINT) across multiple domains, platforms and customer sets,” said John Mengucci, CACI President and Chief Executive Officer. “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.”
“When combined with more than $400 million in share repurchases over the last six quarters, this transaction underscores CACI’s flexible and opportunistic capital deployment approach, which focuses on driving free cash flow growth and delivering long-term shareholder value,” said Mengucci.
“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.”
As a result of the $1.275 billion all-cash transaction, CACI expects to realize a tax benefit over the next 15 years, the present value of which is $194 million. Net of the present value of the tax benefit, the effective consideration is $1.08 billion. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the second quarter of fiscal year 2025.
A conference call hosted by President and CEO John Mengucci and Chief Financial Officer Jeff MacLauchlan will be held this morning at 8:30 a.m. Eastern time to discuss this transaction. Details can be found on the CACI Investor Relations website.
Not Yet a Premium Partner/Sponsor? Learn more about the OS AI Premium Corporate and Individual Plans here. Plans start at $250 annually.
