CACI International Inc of Arlington, VA announced on March 1 that it has completed its transaction with affiliates of Madison Dearborn Partners and CoVant Management to acquire LGS Innovations, a leading provider of real-time spectrum management, C4ISR, and cyber products and solutions to the Intelligence Community and Department of Defense. The strategic acquisition complements CACI’s January purchase of Mastodon Design and accelerates CACI’s growth in its Intelligence Systems and Support, Space Operations and Resiliency, Communications, and Cyber Security market areas.
The combined
purchase price of LGS and Mastodon Design, which closed January 28, 2019, is
expected to be $975 million, or $835 million net of transaction-related tax
benefits worth $140 million on a net present value basis. We anticipate the two
transactions will be accretive to net income and earnings per share, excluding
$17 million of one-time pre-tax transaction costs, virtually all of which will
be recorded in CACI’s fiscal third quarter.
Dr. J.P. (Jack)
London, CACI executive chairman
and chairman of the board, said, “We welcome the highly skilled and inventive
LGS Innovations employees to CACI’s own team of talented innovators. We share a
cultural commitment to integrity and ethics that will further drive excellence
for our customers and long-term value for our shareholders.”
According to Ken Asbury, CACI president and chief executive officer, “CACI’s acquisition of LGS Innovations is the next step in our established strategy to invest in and expand our offerings in signals intelligence, electronic warfare, and cyber products and solutions. Our collective strengths give CACI a significant competitive advantage in our marketplace and meet our government’s need for agile innovation in developing and deploying advanced capabilities to our warfighters.”
Source: CACI International
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