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CACI Closes $84M Buy of General Dynamics Business Unit; Ken Asbury, Jack London Quoted

Ken Asbury

CACI International (NYSE: CACI) has closed its purchase of CSRA’s former systems engineering and acquisition services business unit from General Dynamics (NYSE: GD) for $84M to expand support work for the U.S. Navy.

Arlington, Va.-based CACI said Thursday it expects the acquisition to add approximately $150M to its revenue for fiscal 2019 and be accretive to its earnings per share in FY 2019.

General Dynamics inherited the unit that offers support services to Naval Sea Systems Command and other naval offices through the Falls Church, Va.-based company’s $9.7B purchase of CSRA in April.

The acquired business has approximately 960 employees and at least 89 percent of them hold security clearances.

Ken Asbury, CACI president and CEO and a five-time Wash100 recipient, said the acquisition will help the company advance its growth efforts and position as a service and platforms provider to the Navy as well as pursue opportunities across the service branch.

Jack London, executive chairman and board chair at CACI, said the transaction seeks to reinforce the company’s decades of service to the Navy and demonstrates the firm’s strategy to create value for clients and shareholders.

CACI noted it captures a legacy of program support, systems design and development, systems integration and test and evaluation support services for the life cycles of every naval shipbuilding program in the U.S. through the transaction.

The government information technology services contractor revised its FY 2019 guidance issued Wednesday and now expects to record $4.7B to $4.9B in FY 2019 revenue.

The announcement of the acquisition came a day after CACI released its financial results for the fourth quarter and full fiscal year 2018 that ended June 30.

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