Reuters: CACI the Lead Candidate for Potential $4B Bid on Lockheed’s Govt IT Business


acquisitionCACI International (NYSE: CACI), Leidos (NYSE: LDOS) and Engility (NYSE: EGL) have been named as interested bidders for the government information technology business of Lockheed Martin (NYSE: LMT), Reuters reported Friday.

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.

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