Technical services provider
) received a $10.8 million Department of Defense contract on Feb
14, 2014. A total of 15 Pentagon defense contracts worth $594.1
million were awarded to several listed companies, including
Jacobs Engineering Group Inc.
) among others.
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The contract offers requisite funding to CACI for various on-site
operational supports for the Office of the Under Secretary of
Defense (Comptroller) through Feb. 15, 2015. The contract
reinforces CACI's presence in the high-growth integrated security
solutions market. The company delivers highly specialized
solutions and services that assist the government in safeguarding
America's servicemen in critical missions.
CACI has a large pipeline of new projects and continues to win
deals at regular intervals. These back-to-back contract wins are
the key catalysts for the company. Furthermore, having the
government as a big client lends stability to the business and
moderates fluctuations in revenues. Strategic acquisitions, new
business initiatives and operational excellence are the primary
driving factors for this Zacks Rank #3 (Hold) stock.
On Nov 15, 2013, CACI closed the $820 million acquisition of Six3
Systems, Inc. in cash. This was one of the largest transactions
of its kind in history. The acquisition expanded CACI's
addressable market by approximately $15 billion. Furthermore,
Six3 Systems has added distinctive cyberspace, C4ISR (Command,
Control, Computers, Communications, Intelligence, Surveillance
and Reconnaissance), and intelligence capabilities to CACI
solutions and services and has augmented its customer base. CACI
expects the acquisition to be at least 5% and 10% accretive to
GAAP and adjusted earnings, respectively, for calendar year 2014.
Based in Arlington, Va., CACI delivers IT applications and
infrastructure to improve communications and secure the integrity
of information systems and networks; enhance data collection and
analysis; and increase efficiency and mission effectiveness.
CACI's system-integration skills and intelligence expertise
consume a significant portion of the funds earmarked for the
Department of Homeland Security, while creating systems that
facilitate sharing of critical information among all intelligence
CACI intends to drive operational excellence by intensively
focusing on its organic and inorganic growth strategy and
strengthening its existing customer relationships while building
newer ones. In addition, the company anticipates to significantly
benefit from its cost-reduction program. We believe the company
is comfortably positioned, given its favored relationship with
the Department of Defense.