KUHN CAPITAL Tuesday, March 20, 2018
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CACI Gains Clearance with AMS

May 2

CACI International (NYSE: CAI) has announced that its subsidiary -- CACI Enterprise Solutions -- has completed the purchase of American Management Systemsí (Nasdaq: AMSY) Defense and Intelligence Group and related assets for $415 million in cash.

CACI provides IT and software solutions for federal defense and intelligence agencies that support acquisition, financial management, engineering services and logistics, war fighting and intelligence missions. The purchased company, AMSí D&I group, generated revenue of about $250 million last year, and brings to CACI about 1,650 employees operating in 10 sites across the US.

As a result of the transaction, CACI becomes one of the largest IT firms serving Department of Defense (DoD) and intelligence community markets, with over 9,400 employees and projected 2005FY revenue approaching $1.5 billion.
This purchase is CACIís fourth in only a year: all these deals bulked up the companyís high-security work for the US Government.

Last February, it purchased CMS Information Systems with about 250 employees, nearly 80% of which had high-level security clearances. Earlier, in October, 2003, it acquired C-Cubed, a prominent C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) provider, with 400 employees holding security clearances. And before this, it bought Premier Technology Group, with 360 employees, again many equipped with the appropriate clearances.

Because of this security clearance requirement, CACI exploits a profitable niche relatively invulnerable to the great bugaboo of modern US-based IT services vendors: offshore competition.

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