Key Takeaways
- CACI International Inc has acquired ARKA Group L.P. in an all-cash transaction for $2.6 billion.
- The acquisition aims to deliver advanced technology for national security customers and expand CACI’s capabilities in the space domain.
- The combination of CACI and ARKA is expected to drive long-term growth in free cash flow and generate additional shareholder value.
- The transaction is expected to close in the third quarter of fiscal year 2026, subject to regulatory approvals and customary closing conditions.
- CACI expects to realize a tax benefit with a present value of $225 million as a result of the transaction.
Introduction to the Acquisition
The acquisition of ARKA Group L.P. by CACI International Inc marks a significant step forward in the company’s space strategy. The all-cash transaction, valued at $2.6 billion, aims to deliver advanced technology for national security customers and expand CACI’s capabilities in the space domain. According to John Mengucci, CACI President and Chief Executive Officer, the acquisition represents a major milestone in the company’s commitment to delivering innovative solutions for national security missions. With ARKA’s expertise in space-based sensor portfolios and ground-based software processing, CACI is poised to accelerate the delivery of actionable intelligence to the warfighter.
The Strategic Rationale Behind the Acquisition
The acquisition of ARKA is a strategic move by CACI to enhance its capabilities in the space domain and drive long-term growth in free cash flow. Mengucci believes that the combination of CACI and ARKA will generate additional shareholder value and position the company to capture significant future opportunities in the space domain across the Intelligence Community, U.S. Space Force, and other Department of War customers. The acquisition is also expected to benefit CACI’s employees, with Andreas Nonnenmacher, ARKA President and Chief Executive Officer, expressing confidence that CACI will provide outstanding pathways for ARKA’s employees to thrive.
The Benefits of the Acquisition
The acquisition of ARKA is expected to bring numerous benefits to CACI, including the expansion of its capabilities in the space domain and the enhancement of its ability to deliver innovative solutions for national security missions. The combination of CACI and ARKA is also expected to drive long-term growth in free cash flow and generate additional shareholder value. Furthermore, CACI expects to realize a tax benefit with a present value of $225 million as a result of the transaction. The acquisition is a significant step forward in CACI’s commitment to delivering advanced technology for national security customers and is expected to have a positive impact on the company’s financial performance.
The Transaction Details
The transaction is expected to close in the third quarter of fiscal year 2026, subject to regulatory approvals and customary closing conditions. Wells Fargo acted as exclusive financial advisor for CACI and provided committed financing for the transaction, while Gibson Dunn acted as legal advisor for CACI. J.P. Morgan Securities LLC and Evercore acted as financial advisors for ARKA, and Simpson Thacher & Bartlett LLP acted as legal advisor for ARKA. A conference call was held to discuss the transaction, and details can be found on CACI’s Investor Relations website.
About ARKA and CACI
ARKA is a fully integrated mission partner providing cutting-edge solutions to U.S. and international mission partners. The company has a legacy dating back to the earliest efforts in the United States’ space program and supports all mission domains. CACI International Inc, on the other hand, is a national security company with 25,000 talented employees who are committed to delivering differentiated technology and distinctive expertise to accelerate innovation, drive speed and efficiency, and rapidly anticipate and eliminate threats. The company is a member of the Fortune 500, the Russell 1000 Index, and the S&P MidCap 400 Index.
Forward-Looking Statements
The acquisition of ARKA by CACI is subject to various risks and uncertainties, including the risk that the transaction may not close as expected or that the benefits of the acquisition may not be realized. The companies’ statements regarding the acquisition and its expected benefits are forward-looking statements that are subject to factors that could cause actual results to differ materially from anticipated results. These factors include, but are not limited to, the risk factors set forth in CACI’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025, and other such filings that CACI makes with the Securities and Exchange Commission from time to time.
