Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

CACI INTERNATIONAL INC

(CACI)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

CACI seeks to break up General Dynamics' acquisition of CSRA

03/18/2018 | 11:27pm EST

(Reuters) - U.S. defence contractor CACI International Inc (>> CACI International Inc) said on Sunday it had offered to merge with larger peer CSRA Inc (>> CSRA), seeking to disrupt the latter's $6.8 billion acquisition by General Dynamics Corp (>> General Dynamics).

(Reuters) - U.S. defence contractor CACI International Inc said on Sunday it had offered to merge with larger peer CSRA Inc, seeking to disrupt the latter's $6.8 billion acquisition by General Dynamics Co.

The move comes after CSRA agreed last month to sell itself to General Dynamics, another defence contractor, for $40.75 per share in cash, as companies in the sector seek to position themselves for a pickup in government spending under U.S. President Donald Trump's administration.

CACI's shares have jumped by more than a fifth in the last four months, emboldening the Arlington, Virginia-based company to use its stock as currency to pursue a transformative deal. CACI has a market capitalization of $3.9 billion (2.80 billion pounds), compared with CSRA's $6.7 billion.

CACI's $44 per share offer for CSRA consists of $15 per share in cash and 0.184 CACI shares for each CSRA share, CACI said in a statement. Under the terms of CACI's offer, CSRA shareholders would own 55 percent of the combined company.

CACI said it expects to realize $165 million annually in net run-rate cost synergies, beating the cost benefits of CSRA's deal with General Dynamics. It also argued its stock would make the deal more attractive to CSRA shareholders.

CSRA said on Sunday that its board of directors, in consultation with its legal and financial advisors, will carefully review CACI's proposal. General Dynamics' tender offer is currently scheduled to expire on April 3.

General Dynamics said later on Sunday it believes its all-cash offer is superior to CSRA shareholders and that it intends to proceed with the offer to buy CSRA.

"General Dynamics has secured all necessary regulatory approvals and has the funding in place to complete the transaction in early April," it said in a statement.

CSRA provides information technology and related services to the U.S. Department of Defense and the intelligence community. General Dynamics is hoping that CSRA will help it grab more of the recently increased U.S. defence budget. Under the terms of their deal, CSRA would have to pay General Dynamics a $204 million breakup fee to do a deal with someone else.

CACI has also been seeking to build scale through dealmaking. In 2016, it acquired the government services division of L3 Technologies Inc for $550 million in cash. It also made an unsuccessful offer to merge with Lockheed Martin Corp's (>> Lockheed Martin Corporation) government information technology and services businesses.

Other recent deals in the sector include U.S. defence contractor Northrop Grumman Corp's (>> Northrop Grumman Corporation) agreement last September to buy Orbital ATK Inc for about $7.8 billion, a deal that gives it greater access to lucrative government contracts and expands its arsenal of missile defence systems and space rockets.

CACI on Sunday also raised its 2018 diluted earnings per share guidance from its previous $10.95 to $11.19 range to a new range of between $11.26 and $11.50.

(Reporting by Mike Stone in Washington, D.C. and Greg Roumeliotis in New York; Additional reporting by Ismail Shakil in Bengaluru; Editing by Lisa Shumaker and Sandra Maler)

By Mike Stone and Greg Roumeliotis


ę Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
CACI INTERNATIONAL INC -1.83% 267.32 Delayed Quote.1.15%
GENERAL DYNAMICS CORPORATION -0.54% 205.96 Delayed Quote.-1.20%
LOCKHEED MARTIN CORPORATION 3.71% 387.17 Delayed Quote.8.94%
NORTHROP GRUMMAN CORPORATION 0.03% 403.18 Delayed Quote.4.16%
ONE STOP SYSTEMS, INC. 2.53% 4.05 Delayed Quote.-18.18%
SEEK LIMITED -1.40% 28.82 Delayed Quote.-12.08%
SPACE CO.,LTD. -1.48% 868 Delayed Quote.-2.44%
All news about CACI INTERNATIONAL INC
01/13CACI International Schedules Fiscal 2022 Second Quarter Conference Call
AQ
01/13CACI Wins $514 Million Task Order to Modernize U.S. Army Networks
AQ
01/11CACI International Secures $514 Million Task Order to Upgrade US Army Networks
MT
01/11CACI Wins $514 Million Task Order to Modernize U.S. Army Networks
BU
01/11CACI International Inc Wins $514 Million Task Order to Modernize U.S. Army Networks
CI
01/10CACI International Schedules Fiscal 2022 Second Quarter Conference Call
BU
2021CACI INTERNATIONAL INC /DE/ : Entry into a Material Definitive Agreement, Creation of a Di..
AQ
2021CACI INTERNATIONAL INC /DE/ : Entry into a Material Definitive Agreement, Creation of a Di..
AQ
2021CACI International Inc. Enterers into an Amended and Restated Credit Agreement
CI
2021INSIDER SELL : Caci International
MT
More news
Analyst Recommendations on CACI INTERNATIONAL INC
More recommendations
Financials (USD)
Sales 2022 6 309 M - -
Net income 2022 391 M - -
Net Debt 2022 1 224 M - -
P/E ratio 2022 16,3x
Yield 2022 -
Capitalization 6 236 M 6 236 M -
EV / Sales 2022 1,18x
EV / Sales 2023 1,08x
Nbr of Employees 22 000
Free-Float -
Chart CACI INTERNATIONAL INC
Duration : Period :
CACI International Inc Technical Analysis Chart | CACI | US1271903049 | MarketScreener
Technical analysis trends CACI INTERNATIONAL INC
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 13
Last Close Price 267,32 $
Average target price 317,36 $
Spread / Average Target 18,7%
EPS Revisions
Managers and Directors
John S. Mengucci President, Chief Executive Officer & Director
Thomas A. Mutryn Chief Financial Officer, Treasurer & Executive VP
Michael A. Daniels Chairman
Daniel J. Doody Chief Information Officer & Executive VP
Glenn Kurowski Chief Technology Officer & Senior Vice President
Sector and Competitors