CACI to spend $975 million to acquire two military tech firms

CACI to spend $975 million to acquire two military tech firms

CACI to spend $975 million to acquire two military tech firms

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Arlington-based defense services giant CACI announced Wednesday that it is spending $975 million to separately acquire LGS Innovations and Mastodon Design, both of them niche research and development companies serving defense and intelligence agencies.

The $225 million Mastodon acquisition closed Jan. 29, and the $750 million LGS Innovations acquisition is expected to close in early March, pending approval from regulators.

Adding the two companies marks a substantial shift for CACI, which is better known for government services work.

Also Wednesday, the company reported revenue of $1.18 billion for the most recent quarter, an increase of 8.6 percent over the previous year.

CACI executives said acquiring the two companies should also enable the company to embrace the faster acquisition cycles toward which the Defense Department wants to move.

“Customers are looking to procure and deploy capability faster than ever before,” CACI Chief Operating Officer John Mengucci said. “They cannot afford to be handcuffed by long acquisition cycles and multiyear development efforts.”

Mastodon specializes in advanced radio frequency work, radio transceivers and cybersecurity work.

LGS Innovations is a government contractor focused on research and development for U.S. defense and intelligence agencies. It grew out of Bell Labs, a longtime incubator for Nobel Prize-winning innovations as a research and development unit within AT&T. It is engaged in advanced military communications work, including drone-based signals intelligence.

 

This article was written by Aaron Gregg from The Washington Post and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

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