CACI to buy radio frequency tech maker for $1.3B
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By
Ross Wilkers
The pending addition of Azure Summit Technology is the newest move by CACI International to expand its electronic warfare and electromagnetic spectrum footprints.
CACI International has agreed to acquire Azure Summit Technology for approximately $1.275 billion as part of an ongoing push to add more radio frequency technology and specialists in the electromagnetic spectrum.
Azure Summit opened for business in 2007 as a provider of RF hardware and software-centric technologies for use in platforms such as uncrewed and crewed aircraft, along with maritime systems.
The transaction announced Monday is all-cash in nature and CACI expects to close it in the fourth quarter of this calendar year, which is the company’s fiscal year 2025 second quarter.
Electronic warfare and the electromagnetic spectrum feature prominently in this current iteration of CACI’s strategy and vision for itself, as chief executive John Mengucci said at WT’s June 13 event on the 2024 Top 100.
Roughly 300 employees of Azure Summit are poised to join CACI through the transaction. CACI also expects Azure Summit to contribute approximately $440 million in revenue and $110 million in EBITDA (earnings before interest, taxes, depreciation and amortization) over the next 12 months, according to an investor presentation.
Azure Summit is the prime contractor on the Navy’s Ship’s Signal Exploitation Equipment Transition Production program under a five-year, $697.4 million award booked in the spring of 2022.
SSEE is a cryptologic system that the Navy uses to carry out real-time signals intelligence analysis and acquire geo-location data. Azure Summit’s portion of the work covers SSEE’s Increment F, which covers the manufacturing and installation of the technology onto vessels.
Macquarie Capital acted as the lead financial adviser to Azure Summit.