CACI International [CACI] on Monday said it has completed its $550 million cash acquisition of L-3 Communications’ [LLL] government services segment, in a deal that is expected to add $1 billion in annual sales and significantly expand its capabilities in information technology solutions.
CACI will report its second quarter FY ’16 results on Wednesday at which time it will update its financial guidance for the rest of the fiscal year. CACI said it expects the deal to be accretive to earnings this fiscal year and add at least 10 percent to its earnings per share in FY ’17.
CACI said the acquisition of National Security Solutions (NSS) will expand its opportunities for business growth in its enterprise IT, intelligence services, and other key market areas.
L-3 divested the NSS business segment due to poor growth prospects and low margins. CACI officials said that as part of CACI, Northern Virginia-based NSS will achieve cost synergies and improve program performance, allowing it to operate at more competitive rates and attain higher margins.
“CACI’s acquisition of National Security Solutions is of great strategic value to our company,” Ken Asbury, CACI’s president and CEO said in a statement. “Our collective strengths and capabilities will enhance CACI’s pursuit of higher value opportunities, provide a significant competitive advantage in pursuing and priming larger opportunities, and give us outstanding credentials to compete for and win next-generation IT programs across the federal marketplace.”
NSS has about 4,000 employees with over 90 percent holding security clearances.