correction: corrects headline to say the deal value is $820 Mln
Defense contractor CACI International, Inc (CACI: Quote) agreed Wednesday to acquire peer Six3 Systems, Inc. from its private-equity owner GTCR LLC in a deal valued at $820 million. The deal, subject to regulatory approvals, is expected to close before December 2013.
"CACI's acquisition of Six3 Systems, Inc. fits perfectly within the objectives of our strategic growth plan. It positions CACI with expanded capabilities to deliver high-value and in-demand solutions and services for our customers' highest-priority national security and defense challenges," CACI Chairman Jack London said in a statement.
McLean, Virginia-based Six3 is a high-end national security and defense intelligence services provider focused on developing and acquiring specialized capabilities that cater to the intelligence community, Department of Defense and civilian security agencies. The company was formed in July 2009 by industry veteran Bob Coleman in partnership with GTCR. Six3 expects calendar year 2013 revenues of about $470 million.
The deal will expand CACI's market opportunities by about $15 billion by adding distinctive cyberspace, C4ISR (command, control, communications, computers, intelligence, surveillance, and reconnaissance), and intelligence capabilities to its portfolio.
Arlington, Virginia-based CACI noted that like itself, Six3 Systems also focuses on enduring government missions, distinctive technologies, and critical national security missions. The deal will enable CACI to offer high-end, affordable solutions to new and existing customers with a competitive advantage.
CACI said it has secured a firm new financing commitment for $800 million to fund the deal. It will also use borrowings under its existing revolving credit facility.
The deal is is expected to be at least 5 percent accretive to CACI's reported earnings per share or at least 10 percent accretive to diluted adjusted earnings per share in calendar year 2014.
CACI noted that the deal will be the largest in its long and successful track record of more than 55 acquisitions.
Chicago-based GTCR is a leading private equity firm focused on investing in growth companies in the financial services & technology, healthcare and information services & technology industries.
"Six3 Systems will benefit from the larger resource and customer space that CACI offers, and CACI will benefit from the leading-edge technical capabilities and innovation that are Six3 Systems trademarks," Six3 CEO Robert Coleman stated.
CACI closed Tuesday's regular trading session at $67.31, down $0.37 on a volume of 0.18 million shares.
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by RTT Staff Writer
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