CACI International ( CACI Quick Quote CACI - Free Report) recently concluded the previously announced buyout of the California-based SA Photonics, a pioneer in developing and deploying innovative photonics solutions for commercial and government customers. The company acquired the privately-held business for an undisclosed amount. The acquisition, announced in November, is likely to broaden CACI’s free-space optical (“FSO”) communications portfolio, thereby enhancing its manufacturing capabilities and expertise in providing advanced photonics engineering solutions. The buyout is anticipated to strengthen the company’s competitive position in space, airborne, and terrestrial missions to U.S. government and commercial customers. Further, it will support the company’s research and development innovation. SA Photonics designs, manufactures, and develops complex communications, vision and mechanical systems. Founded in 2002, the private company provides industry-leading technology in four main areas, which include FSO communications, fiber lasers, optical sensors, and head-worn displays and vision systems. With SA Photonics, CACI will address a broader market and will provide technology that advances next-generation communications spanning from high-end manned flight programs to the value-based proliferated low-earth-orbit market. The company will also be adding two major facilities in California and Florida with this buyout.
CACI secured several notable contracts in its last reported quarter. These include a five-year, $209-million single-award contract by one of the armed services to continue to provide agile development, systems integration, and cloud migration for accounting and financial management systems.
CACI was awarded a five-year task order worth $54 million to provide mission expertise for supporting the customer in the areas of mathematical, statistical, engineering, physical, and life sciences analysis, and program management. Further, it won a prime contract position in all 10 pools on the General Services Administration ASTRO indefinite-delivery/indefinite-quantity contract.
Back-to-back contract wins are key catalysts driving the success of CACI. It has a large pipeline of new projects and continues to win deals at regular intervals. However, as of Sep 30, 2021, its total backlog was $23.9 billion.
Zacks Rank & Stocks to Consider
CACI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are
Arrow Electronics ( ARW Quick Quote ARW - Free Report) , Advanced Micro Devices ( AMD Quick Quote AMD - Free Report) and Qualcomm ( QCOM Quick Quote QCOM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here
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