CACI International Inc. has agreed to acquire Azure Summit Technology in a $1.275 billion deal. The transaction is expected to close in the second quarter of fiscal year 2025.
In support of CACI’s mission to provide specialized expertise and technology to address critical national security challenges, Azure Summit boosts Defense Department mission needs through its portfolio of high-performance radio frequency technology and its team of skilled engineers dedicated to the electromagnetic spectrum, the company 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,” said John Mengucci, CACI president and CEO. “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.”
Azure Summit President and CEO Thomas Green said 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,” Green said.
The $1.275 billion all-cash transaction means CACI expects to realize a tax benefit over the next 15 years, the present value of which is $194 million. Net of the present value of the tax benefit, the effective consideration is $1.08 billion, the company said.
“For our shareholders, the acquisition of Azure Summit is compelling both strategically and financially,” Mengucci added. “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,” Mengucci said.