Recently,
CACI International Inc.
(
CACI
), a professional services and information technology company,
signed a definitive agreement to acquire Delta Solutions and
Technologies Inc.
Headquartered in Reston, Virginia, Delta Solutions provides
financial management and business analytics services to the federal
government.
The acquisition is expected to close by July 1, 2012. Delta
Solutions generated revenues of $44.8 million in 2011. CACI
International expects the acquisition to be accretive to the bottom
line in the first twelve months.
Employing 175 management consultants and IT specialists, Delta
Solutions provide specialized solutions with key focus on Federal
Financial Management (FFM) systems' design, development,
integration and operations and maintenance.
The key customers for the company include federal civilian
agencies such as the Department of the Interior, Department of
Justice, Department of Veterans Affairs, and Department of Housing
and Urban Development.
The acquisition also expands CACI's strong position in the
business system solutions and government transformation arenas.
Moreover, it also complements CACI International's acquisition of
the
Oracle
(
ORCL
)-based Advanced Programs Group in 2011.
Management believes that financial management systems are quite
vital to the business operations of federal agencies and updating
the technology behind these systems is critical to mission success.
CACI International expects the acquisition of Delta Solutions to
pave new growth opportunities for the company in the high-priority
area of government transformation while seizing a larger chunk of
this huge market.
CACI International's earnings estimates for FY12 have inched up
in the last thirty days. Earlier, estimates for FY12 have declined
after the company reported its results for third-quarter 2012 .
Revenues are now expected to come within $3,730 million - $3,830
million, declining from the previous projected range of $3,850
million - $4,050 million.
We prefer to remain on the sidelines and maintain our Neutral
recommendation on the company's stock. Our recommendation is
supported by Zacks #3 Rank, which translates into a short-term
rating of Hold.
CACI INTL A (CACI): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research