CACI International Inc (NYSE: CACI) has announced its definitive agreement to acquire Azure Summit Technology in an all-cash transaction valued at $1.275 billion. This strategic acquisition aligns with CACI's mission to provide distinctive expertise and differentiated technology to address national security challenges. The purchase is expected to enhance CACI's offerings in intelligence, surveillance, and reconnaissance (ISR), electronic warfare (EW), and signals intelligence (SIGINT) across various domains, platforms, and customer sets.
The transaction is anticipated to be immediately accretive across multiple financial metrics, in addition to realizing a tax benefit over the next 15 years, with a present value of $194 million. Net of the present value of the tax benefit, the effective consideration for the acquisition is $1.08 billion.
Notably, CACI has repurchased over $400 million in shares over the past six quarters, underscoring its flexible and opportunistic capital deployment approach aimed at driving free cash flow growth and delivering long-term shareholder value.
The acquisition is subject to regulatory approvals and customary closing conditions and is slated to be finalized in the second quarter of fiscal year 2025.
Azure Summit Technology, the company being acquired, is an engineering firm specializing in high-performance radio frequency (RF) hardware and software-defined technologies for critical national security missions. With a team of qualified engineers and subject matter experts, Azure Summit develops innovative signal processing solutions for platforms ranging from unmanned aerial vehicles (UAVs) to manned aircraft and maritime platforms.
The acquisition is expected to provide outstanding career opportunities to Azure Summit's employees, as their cultural alignment, technology, and engineering expertise are set to drive continued innovation and growth under CACI's leadership.
The transaction reflects CACI's commitment to bolstering its market-based strategy and expanding its capabilities in areas of enduring national security priorities. This move, combined with the company's share repurchases and capital deployment approach, underscores CACI's focus on long-term value creation and growth. As a result of these announcements, the company's shares have moved 3.2% on the market, and are now trading at a price of $491.45. Check out the company's full 8-K submission here.
