CACI's latest acquisitions bolster its commitment to secure communications

Deals for ID Technologies and SA Photonics are examples of CACI’s strategy to invest ahead of need, CEO John Mengucci said.

Deals for ID Technologies and SA Photonics are examples of CACI’s strategy to invest ahead of need, CEO John Mengucci said. Courtesy of CACI International

CACI International ended 2021 with an acquisition and started 2022 with another, and both deals signal CACI's commitment to secure communications from anywhere at anytime.

CACI International has started calendar year 2022 as it ended 2021 with an acquisition focused on what it calls mission technology, a core piece of the company’s strategy for nearly the past decade.

Reston, Virginia-headquartered CACI has paid $225 million for ID Technologies, a provider of enterprise IT and network modernization services to help agencies with remote access.

The transaction closed on Dec. 29, CACI said in its second quarter financial release Wednesday. CACI completed its $275 million purchase of space communications technology firm SA Photonics roughly two weeks prior.

ID Technologies was owned by private equity firm The Acacia Group, which formed that company through the acquisition of the former Intelligent Decisions in 2018.

Acacia split Intelligent Decisions into two new companies: the product business named ID Technologies, and the services firm today known as Applied Insight.

The idea behind ID Technologies’ creation was to focus on developing software that complies with the National Security Agency’s “Commercial Solutions for Classified” standard, which governs access to classified systems.

IDT made an acquisition of its own during the summer of 2021 when it purchased Attila Security, a designer of software that facilitates secure remote access to classified and sensitive networks.

Demand for that access by defense and intelligence agencies predates the COVID-19 pandemic, CACI CEO John Mengucci said during the company’s second quarter earnings call with investors.

That demand of course has accelerated during the pandemic as much of the government pushes toward a less geographically and physically concentrated workforce.

“To fulfill this requirement, they invested internally and developed a software-enabled offering that allows out-of-the-box commercial devices to securely access classified networks,” Mengucci said.

In essence, the NSA’s CSFC requirement means commercially-built mobile devices have customized software installed on them to protect information.

Mengucci said NSA's requirement is not achieved when you have the networks without the enabled devices. The same is true you have the enabled devices without the right networks.

For CACI’s current 2022 fiscal year ending June 30, CACI expects IDT to contribute $25 million in revenue and SA Photonics to add $95 million on the top line.

Mengucci said both transactions for IDT and SA Photonics are “early-stage investments” for CACI, but also represent the the company's desire to invest ahead of the need.

On the matter of SA Photonics, Mengucci said CACI sees the acquisition of that company as expanding how it supports satellite constellations in low-earth orbit and how agencies use them for fast and secured communications.

Photonics is a type of physical science that focuses on generating and manipulating light signals for use in free space communications. CACI is looking to add more manufacturing capability for that technology to fulfill requirements for laser communications from airborne and maritime platforms.

“Those requirements are not even defined yet, but beginning to be discussed because of the amount of information that's going to need to be passed sensor-to sensor and sensor-to-ground,” Mengucci said.

How Mengucci described that information transfer is seen in the Defense Department’s work to build out its JADC2 construct, short for Joint All-Domain Command-and-Control, that is envisioned as connecting every soldier and system in the field.

Factor into CACI’s thinking the standup of Space Force as a new military service branch whose mission is explained by the name, along with the related push to recapitalize the U.S. government’s space assets and infrastructure.

“That's important when you think about intelligence customers and sensitive customers' missions, who are not going to search the globe to find other cross-link laser comms solutions to be pushing highly-classified data,” said Mengucci.

CACI’s latest acquisition announcement coincided with a slight reduction in its organic revenue growth expectation for its current fiscal year, down to 2.5 percent from the prior 4.5 percent expected increase.

Weighing on that forecast are challenges in the supply chain and these other related impacts from the increase in COVID-19 cases: reduced in-person meetings and access to government facilities, lower technology sales that depend on the former, and slower task order ramp-up that the company would record revenue from.

The company did raise its overall revenue outlook with the acquisitions to between $6.3 billion and $6.4 billion, showing total top-line growth of 5 percent.

Delays in technology sales and the cost of acquisitions factor into CACI’s lower bottom line outlook as well, now at a margin of 10.7 percent adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

For the second quarter, revenue climbed 1.2 percent year-over-year to $1.49 billion with adjusted EBITDA down 9.5 percent to $158 million.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.