CACI nears closing on purchase of AMS division
- By Roseanne Gerin
- Apr 15, 2004
CACI International Inc. is on track to complete its acquisition of the defense assets of American Management Systems Inc. next month, though the company is still awaiting government approval of the deal, CACI's chief financial officer told Washington Technology today.
The Arlington, Va.-based systems integrator's purchase of AMS' defense and intelligence group for $415 million was announced in March. It is part of a complex deal whereby CGI Group Inc. of Montreal is buying AMS' commercial and non-defense government business for $858 million.
When completed, the acquisition will make CACI one of the biggest IT services providers for the federal defense and intelligence communities.
The company is No. 19 on Washington Technology's Top 100 list for 2003, a ranking of major federal prime contractors based on their contract revenue.
Before the purchase is concluded, the federal government must conduct a national security review of the deal since CGI is a foreign company buying a domestic IT consulting firm that does business with federal defense-related agencies.
The government must also approve the transfer of defense-related contracts, said Stephen Waechter, CACI's chief financial officer.
"We feel confident [the deal's] progressing and can't think of any reasons why the federal government would not approve it," he said.
Waechter, however, did not dismiss the possibility that the deal could be concluded at a later date since CACI must wait for the government's go-ahead before completing the acquisition.
CACI has already secured a $550 million bank credit facility to finance its purchase of AMS' defense assets. CACI will announce its third quarter earnings April 21.