:Technology firm CACI International said on Monday it would buy privately-held radar and communications equipment maker Azure Summit Technology for $1.28 billion in cash to bulk up its business catering to the defense industry.
Government clients globally rely on companies such as CACI that provide cybersecurity and defense products, including electronic warfare systems, as they look to bolster national security.
Azure Summit’s products are used in electronic warfare systems, which include capabilities to help counter drones and surveillance.
“We see tremendous demand for Azure’s products,” brokerage William Blair said in a note on Monday.
The transaction is expected to close in the second quarter of the fiscal year ending June 2025, CACI said. Shares of the Reston, Virginia-based company were up 3.5 per cent in morning trading.
“From a financial standpoint, it (buying Azure Summit) will be immediately accretive across multiple financial metrics,” CACI CEO John Mengucci said.
CACI, which counts U.S government agencies and departments among its clients, said last month its fourth-quarter revenue grew nearly 20 per cent to $2.04 billion.
From: channelnewsasia
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