CACI purchase of Information Systems Support delayed

CACI International Inc.'s acquisition of Information Systems Support Inc., a provider of IT, communications and logistics solutions, has hit an unexpected snag and will not close on schedule.

The acquisition, which was announced last month and expected to close today, has been delayed indefinitely, because ISS lost a significant contract recompete that will require a revised valuation of the company, CACI said in a statement.

The companies are still negotiating the final terms of the deal, and both sides are optimistic that they will reach an agreement, CACI said.

The acquisition of ISS of Gaithersburg, Md., company is designed to boost CACI's core IT capabilities. Through the purchase, CACI hopes to broaden its reach in several high-growth areas associated with the U.S. national security market.

CACI previously estimated that the acquisition would generate $80 million to $85 million in annual revenue. Signing the definitive agreement to acquire ISS was listed as one of the highlights of CACI's second quarter of 2005 in a Jan. 25 press release.

CACI of Arlington, Va., has more than 9,300 employees and had annual revenue of $1.1 billion in fiscal 2004. The company ranks No. 17 on Washington Technology's 2005 Top 100 list of federal prime contractors.