A professional services and information technology provider
CACI International Inc.
) recently entered into a definitive agreement to purchase
Emergint Technologies, Inc. The acquisition, which is expected to
be completed by December 1, 2012, is likely to be accretive to
the company's bottom line in the first twelve months.
Emergint, based in Louisville, Kentucky, is mainly engaged in
the distribution of a range of healthcare-focused IT-related
solutions, which include health data integration and analysis
services, data analytics, management and IT consulting, and data
and records management solutions to fulfill the requirement of
its federal and state level clients. Emergint is expected to earn
revenue of $42 million in 2012.
The acquisition appears to be quite a profitable one for CACI
International as it will enhance the company's potential in the
healthcare IT industry. Management stated that with the support
of Emergint's data analytics services and its strong associations
with national health organizations, the company is likely to
solidify its foothold in the growing healthcare IT arena. The
acquisition of Emergint will pave new growth opportunities for
the company in the critical healthcare IT market.
Previously, CACI International acquired Delta Solutions and
Technologies Inc. for expanding its business system solutions and
government transformation arenas. The company believes the
acquisition of Delta Solutions will be vital in the long run as
the federal government continually focuses on achieving clean
audit opinions while making better spending decisions.
However, the company needs to be wary of its formidable
competitors who include big names such as,
CGI Group, Inc
ManTech International Corporation
). CGI Group's operating unit CGI Federal Inc. (CGI), recently
entered into a partnership agreement with Centers for Medicare
& Medicaid Services (CMS). Per the contract, CGI Group will
be involved in recreating and introducing the official U.S.
Government website, namely, Medicare.gov, under the Medicare
program. Hence, the company should not become complacent with its
contract win spree.
The current Zacks Consensus Estimates for CACI International
Inc. are $1.64 and $6.60 per share for the second quarter of
fiscal 2013 and fiscal 2013 (ending June 30, 2013), respectively.
The estimates represent a year-over-year growth of 8.70% for the
second quarter and 11.07% for fiscal 2013. At present, we have a
'Neutral' recommendation on CACI International Inc. The stock
currently carries a Zacks #3 Rank, which translates into a
short-term 'Hold' rating.
CACI INTL A (CACI): Free Stock Analysis
CGI GRP INC -A (GIB): Free Stock Analysis
MANTECH INTL -A (MANT): Free Stock Analysis
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