CACI to buy C-Cubed
- By Patience Wait
- Sep 25, 2003
CACI International Inc. has signed a definitive agreement to acquire C-Cubed Corp., a Springfield, Va., company that provides specialized services in command, control, communications, computers, intelligence, surveillance and reconnaissance, or C4ISR, initiatives to the Defense Department, intelligence community and federal civilian agencies, CACI announced this week.
The terms of the purchase were not disclosed; the acquisition is expected to be completed some time in October.
C-Cubed is 100 percent employee owned. CACI is a publicly owned company traded on the New York Stock Exchange; its share price closed at $44.90 on Wednesday, down about $1, from Tuesday when the close was $45.89.
C-Cubed conducts business in five primary areas: network enterprise solutions, systems integration, integrated logistics support, combat systems and deep submergence engineering. The company has over 400 employees, most of whom hold high-level security clearances. For fiscal year 2003, C-Cubed recorded revenue of $49 million and $3.2 million in operating income.
CACI, based in Arlington, Va., recorded 2002 revenue of $681.9 million. Jack London, chairman and chief executive officer. London has said his goal is for the company to reach $1 billion in revenue by 2005.
Jon Kutler, chairman and chief executive officer of Quarterdeck Investment Partners LLC, Los Angeles, said that the acquisition of C-Cubed is a good move for CACI, which historically has pursued niche firms rather than mega-deals.
"Jack London was in this space before many of these companies existed, and he is likely to be there after everyone has left," Kutler said. "He likes running a public company and does a good job of it for shareholders ? Many of the deals CACI has been doing has been about [gaining] customer sets rather than new capabilities ? it's a way to get into new customers."