Mike Stone and Andrea Shalal write that CACI has emerged in the lead for a potential $4 billion purchase of the business unit after Lockheed officials held discussions with the three companies.
Lockheed is currently reviewing its prospects and expects to make a decision by March on whether to sell or spin off the government IT segment.
The report said talks between Lockheed and CACI center on a possible Reverse Morris Trust transaction to limit taxes.
A sale will cover some costs from Lockheed’s $9 billion purchase of Sikorsky Aircraft earlier this year and potentially make CACI the largest U.S. government services contractor, Reuters reported.