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Recently, CACI International Inc. (CACI - Analyst Report), 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 - Analyst Report)-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.

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