CACI International [CACI] on Monday said it has agreed to acquire Azure Summit Technology
for $1.3 billion in a cash deal that adds to the company’s products and capabilities supporting intelligence, surveillance, reconnaissance, electronic warfare, and signals intelligence.
The pending deal is subject to regulatory approvals and is expected to close in CACI’s second quarter of fiscal year 2025 that ends this December. CACI expects Azure Summit to generate about $440 million in sales and $110 million in operating income in the first year of the deal.
Azure Summit has about 300 employees, 80 percent of which have security clearances.
“For our shareholders, the acquisition of Azure Summit is compelling both strategically and financially,” CACI President and CEO John Mengucci said in a statement. “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.”
Azure Summit, which is based in Northern Virginia and has facilities in Florida, has capabilities in radio frequency hardware and system design, digital signal processing, software development, open systems, and automated production testing. The company makes transceivers, various detection, and direction-finding mission systems for different defense applications.
Azure Summit supplies its technologies as a Tier 2 and Tier 1 supplier to prime contractors.
The investor and strategic services consultancy Capital Alpha Partners said the acquisition “is another marker in a trend where services-focused companies are moving into defense product markets.”
CACI said the all-cash nature of the deal will give it a $194 million tax benefit over the next 15 years.