CACI CACI International Inc

In an effort to enhance cybersecurity capabilities, CACI International (CACI) recently signed a definitive agreement to acquire Paradigm Holdings Inc., the parent of Paradigm Solutions Corporation. The financial details of the contract were not disclosed.

Headquartered in Rockville, Maryland, Paradigm Holdings provides cybersecurity and enterprise IT solutions to federal civilian agencies, the Defense Department and the intelligence community.

Having 185 employees with strong credentials, Paradigm generated revenues of $55 million for calendar year 2011. Paradigm clients include the Federal Aviation Administration, Defense Information Systems Agency, and the Departments of State, Energy and Treasury.

As a consequence of the merger, the company will gain Paradigm’s offerings ranging from cybersecurity and software engineering to cyber operations. 

Paradigm will support CACI’s strategy of providing integrated solutions for cyber operations and enterprise IT/security engineering. Furthermore, CACI would increase its support for national security missions. 

The acquisition will be completed in the fall of 2011. Management stated that the acquisition will be accretive to CACI’s earnings per share during its first 12 months.

The company had earlier completed the acquisition of Pangia Technologies, LLC., a software engineering company.

Based in Maryland, Pangia provides technical solutions in the areas of computer network operations, information assurance, mission systems, software and systems engineering, and IT infrastructure support.

With this acquisition, the company would expand its presence in the Intelligence Community and strengthen its technical offerings in the area of cybersecurity. The acquisition is expected to be accretive to CACI’s earnings per share during its first 12 months.

We are confident about CACI International’s recent acquisition activities strengthening its products and services, new contract wins and share repurchase activities. We have an Outperform recommendation on the stock. Our recommendation is supported by a Zacks #2 Rank, which translates into a short-term rating of Buy.

 
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