CACI International [CACI] on Wednesday said that in late December it acquired ID Technologies (IDT) for $225 million, a deal that boosts its capabilities in secure communications.

ID Technologies, which was a portfolio company of The Acacia Group

, has 111 employees and annual sales of $190 million. ID Technologies is expected to contribute $95 million to CACI’s fiscal year 2022, which ends in June.

IDT had been a value-added reseller until a few years ago when it invested in software to become a provider of National Security Agency-compliant commercial solutions for classified technology. The technology helps support dispersed workforces through improved device security.

The company “recognized the growing need for secure remote access by DoD and intelligence community customers,” John Mengucci, CACI’s president and CEO, said Thursday on CACI’s second quarter earnings call. “To fulfill this requirement, they invested internally and developed a software-enabled offering that allows out-of-the-box commercial devices to securely access classified networks.”

Mengucci said that IDT’s capabilities combined with CACI’s network modernization capabilities “provide long-term growth and margin expansion opportunities.”

CACI said that it will also leverage IDT’s capabilities for cloud and network solutions.

Some of IDT’s customers include the Air Force, Army, Department of Homeland Security, national security communities and federal civilian agencies.

Jefferies served as IDT’s financial adviser on the deal.

CACI on Wednesday said its second quarter sales increased a percent to $1.5 billion while net income slid 15 percent to $90.3 million, $3.83 earnings per share (EPS), from $106.5 million ($4.18 EPS).

CACI increased the bottom-end of its sales guidance for FY ’22 by $100 million to between $6.3 billion to $6.4 billion to account for recent acquisitions, but organic revenue is expected to decline in the second half of the fiscal year due to COVID-19 impacts limiting “engagements” between the company and its federal customers, and direct impacts on customers, Mengucci said.

COVID impacts also led CACI to narrow its earnings guidance to between $430 million and $440 million, a $10 million cut to the previous top-end of the range.