CACI International has made headlines with its recent announcement of a significant acquisition, agreeing to purchase Azure Summit Technology in a deal valued at approximately $1.28 billion. This all-cash transaction aims to enhance CACI's portfolio in the defense sector, particularly in providing cutting-edge technological solutions for military applications. Azure Summit is noted for its expertise in radio frequency hardware and software development, making this acquisition a strategic step to bolster CACI's capabilities in vital areas such as intelligence, surveillance and reconnaissance, electronic warfare, and signals intelligence.
Chief Executive John Mengucci commented on the transaction, highlighting its potential to enhance service offerings that align with enduring national security priorities. The acquisition is subject to regulatory approval, but it is expected to be finalized in the second quarter of fiscal 2025. After the announcement, shares of CACI saw a positive uptick, increasing by 4%, marking investor confidence in the company's strategic direction. Mengucci further elaborated on the acquisition's benefits, stating, "For our shareholders, the acquisition of Azure Summit is compelling both strategically and financially.
It not only enhances our offerings in areas of enduring national security priorities, but also brings with it an installed base of fielded, mature technology." This statement underscores the importance of such mergers in reinforcing CACI's position in a competitive industry that increasingly demands advanced technological solutions. Furthermore, the transaction is projected to be "immediately accretive across multiple financial metrics," which suggests that investors can expect positive impacts on CACI's earnings shortly after completion.
The company anticipates that Azure Summit will contribute approximately $440 million in revenue within the next 12 months, as indicated in an investor presentation. Notably, CACI also forecasts a tax benefit of around $194 million over the next 15 years from this acquisition. Azure Summit's CEO, Thomas Green, expressed enthusiasm about the merger, stating, "The alignment between our cultures, technology and engineering heritage will drive continued innovation and growth under CACI leadership in the future.
More importantly, our mission-focused customers will share the benefits from the combined business almost immediately." This quote highlights the collaborative potential that the merger presents and the immediate benefits that could ensue for both companies' clientele. In a broader context, CACI reported impressive financial performance last month, marking a considerable 25% annual increase in its fiscal fourth-quarter earnings, achieving a remarkable $6.61 per share.
Revenue also climbed 20% to reach $2.04 billion for the quarter. During this period, CACI provided a fiscal outlook for 2025 with adjusted EPS estimates ranging from $22.44 to $23.33 and projected revenue between $7.9 billion and $8.1 billion, further confirming its strong market presence and future growth expectations. As CACI continues to expand its footprint in the defense technology sector, the acquisition of Azure Summit Technology stands as a significant milestone, promising strengthened offerings, enhanced innovation, and tangible benefits for shareholders and clients alike..