CACI International announced today that it has entered into a definitive agreement to buy Azure Summit Technology in an all-cash transaction for $1.275 billion. And in alignment with CACI’s goal of delivering 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.
With 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. And net of the present value of the tax benefit, the effective consideration is $1.08 billion.
The deal is subject to regulatory approvals and customary closing conditions and is expected to close in the second quarter of fiscal year 2025.
KEY QUOTES:
“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. 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. 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.”
-John Mengucci, CACI President and Chief Executive Officer
“I am confident that CACI will offer outstanding career opportunities to our talented and dedicated employees. 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.”
-Azure Summit President and Chief Executive Officer Thomas Green
