CACI Agrees To Acquire Azure Summit For $1.275B, Boosting Defense Capabilities

Author: Lekha Gupta | September 16, 2024 12:06pm

CACI International, Inc. (NYSE:CACI) shares are trading higher after the company announced it will acquire Azure Summit Technology for $1.275 billion in cash.

Azure Summit is expected to enhance Department of Defense (DoD) capabilities through its advanced radio frequency (RF) technology and skilled engineering team specializing in the electromagnetic spectrum.

Following the acquisition, CACI anticipates a tax benefit valued at $194 million over the next 15 years, resulting in an effective consideration of $1.08 billion.

The deal is subject to regulatory approvals and customary conditions, with a projected closing in the second quarter of fiscal year 2025.

John Mengucci, CACI President and Chief Executive Officer, said, “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.”

“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.” 

As of June 30, CACI’s cash and cash equivalents stood at around $134 million.

Price Action: CACI shares are up 3.18% at $491.39 at the last check Monday.

Image via Shutterstock

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Posted In: CACI