CACI International buys LGS Innovations from MDP and CoVant

4 March 2019 (Last Updated March 4th, 2019 11:17)

CACI International has acquired LGS Innovations from Madison Dearborn Partners (MDP) and CoVant Management in a $750m deal.

CACI International has acquired LGS Innovations from Madison Dearborn Partners (MDP) and CoVant Management in a $750m deal.

In January, CACI signed a definitive agreement with MDP and CoVant Management for the acquisition. CACI also announced the purchase of Mastodon Design the same month.

The joint acquisition price of LGS Innovations and Mastodon Design is expected to be $975m, or $835m net of transaction-related tax benefits worth $140m on a net present value basis.

According to CACI, the two transactions are to be recorded in the company’s fiscal third quarter and expected to be accretive to net income and earnings per share, excluding $17m of one-time pre-tax transaction costs.

LGS Innovations, a former federal division of Bell Labs, is a partner of the US Federal Government.

“CACI’s acquisition of LGS Innovations is the next step in our established strategy to invest in and expand our offerings in signals intelligence, electronic warfare, and cyber products.”

It is a provider of cyber products and command, control, communications, computer, intelligence, surveillance, and reconnaissance (C4ISR) to the US Department of Defence, the US intelligence community and commercial clients globally.

Mastodon Design manufactures rugged signals intelligence (SIGINT), cyber and electronic warfare systems.

CACI’s president and CEO Ken Ashbury said: “CACI’s acquisition of LGS Innovations is the next step in our established strategy to invest in and expand our offerings in signals intelligence, electronic warfare, and cyber products and solutions.

“Our collective strengths give CACI a significant competitive advantage in our marketplace and meet our government’s need for agile innovation in developing and deploying advanced capabilities to our warfighters.”

Headquartered in Arlington, Virginia, US, CACI provides services to various branches of federal government, including defence, intelligence and homeland security.