M&A

CACI closes deal for LGS Innovations

CACI International said Friday it has closed its acquisition of LGS Innovations, one of two deals announced in tandem in late January alongside that of Mastodon Design for $975 million combined.

The LGS transaction is valued at $750 million while the Mastodon deal has a $225 million price tag. Both moves are intended to grow CACI’s portfolio in spectrum management, cyber products, C4ISR and rapid design and manufacturing of rugged products for signals intelligence, electronic warfare and cyber operations.

In explaining the rationale to investors for both acquisitions, CACI executives described how they see the moves as advancing their strategy to increase capabilities around intelligence products, plus become a more high-end integrator of technologies and solutions for agencies.

That represents a shift away from CACI’s previous focus on professional services, a transition CEO Ken Asbury has long signaled over his nearly six-year tenure as one the company needed to make in order to differentiate themselves in the market.

“We're really looking at disrupting what has always been a full-scale hardware marketplace with software-definable products and solutions, where we can add functionality and capability quickly,” CACI Chief Operating Officer John Mengucci told analysts in a Jan. 30 call to discuss the transactions.

“We're looking at multi-use devices which will lessen the burden of carrying a device per function.”

About the Author

Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at rwilkers@washingtontechnology.com. Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.

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