CACI to acquire LGS Innovations, Mastodon Design
CACI International Inc announced that it has entered into an agreement 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. LGS traces its roots through decades of innovative companies beginning with Bell Labs. CACI has also acquired Mastodon Design, experts in the rapid design and manufacturing of rugged signals intelligence, electronic warfare, and cyber operations products and solutions. Their modular designs are small form factor, lightweight, consume less power, and provide mission flexibility with greater capabilities. CACI will leverage their integrated technology and capabilities to create scalable SIGINT, EW, and cyber operations products and solutions, providing advanced operational capabilities to CACI's warfighters to address existing and emerging threats. The combined purchase price is expected to be $975M, or $835M net of transaction-related tax benefit worth $140 million on a net present value basis. Over the next 12 months, the two transactions are expected to add approximately $480 million in revenue and $82 million in EBITDA. CACI anticipates the transactions will be accretive to net income and earnings per share, excluding one-time transaction costs.