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CACI to Buy Advanced Programs LLC

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CACI International Inc (CACI - Free Report) recently announced that it has signed a definitive agreement to acquire Advanced Programs Group, LLC.

Headquartered in Reston, Virginia and founded in 2004, Advanced Programs Group (APG) currently employs 110 people.

APG’s services include Oracle e-Business Suite (EBS) implementations, IT program management, enterprise architecture, and security services.

Advanced Programs Group (APG) provided Oracle e-business services in the federal market. APG manages the entire lifecycle of an Oracle implementation – including the design, configuration, testing, deployment, maintenance, and enhancement phases and has successfully upgraded federal clients to the latest Oracle EBS release.

Management expects the acquisition of APG will expand the company’s presence in the business and government transformation arenas. APG has contract vehicles with several key civilian and Department of Defense clients, including the National Institutes of Health (NIH) and the Department of the Interior’s (DOI) National Business Center (NBC).

The transaction, expected to be completed by October 1, 2011, is expected to be accretive to CACI’s bottom-line during its first 12 months.

Earlier in the month, CACI International completed the acquisition of Paradigm Holdings, Inc., the parent of Paradigm Solutions Corporation. Headquartered in Rockville, Maryland, Paradigm Holdings provides cybersecurity and enterprise IT solutions to federal civilian agencies, the Defense Department and the intelligence community.

The acquisition is expected to expand the cyberspace solutions CACI offers to help its government clients respond to persistent threats to national security and increase its strong presence in supporting national security missions.

Having 185 employees with strong credentials, Paradigm generated revenues of $55 million for calendar year 2011. Paradigm clients include the Federal Aviation Administration, Defense Information Systems Agency, and the Departments of State, Energy and Treasury.

Paradigm will support CACI’s strategy of providing integrated solutions for cyber operations and enterprise IT/security engineering. Furthermore, CACI would increase its support for national security missions. 

The acquisition will be completed in the fall of 2011. Management stated that the acquisition will be accretive to CACI’s earnings per share during its first 12 months.

We continue to have an Outperform recommendation on CACI International (CACI - Free Report) . Our recommendation is supported by a Zacks #1 Rank which translates into a short-term rating of Buy.

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