Dec 22 (Reuters) - U.S. defense contractor CACI

International ( CACI ) will acquire space technology provider

ARKA Group from funds managed by Blackstone Tactical

Opportunities for $2.6 ‌billion, expanding its footprint in

national security and space-based ​intelligence.

The all-cash deal, announced on Monday, ‍comes amid surging

demand for ⁠defense and ⁠intelligence contracts, driven by rising

geopolitical tensions, increased ‌military spending by ​the United

States and its allies, and greater investment in space, ⁠cyber

and advanced surveillance ‍capabilities.

The ​acquisition will add ARKA's space-based sensor systems

and software, which support national security ‍missions,

including work for the intelligence community and the U.S. Space

Force, to CACI's ( CACI ) space portfolio. ARKA provides technology used

to process and analyze ​data ‍for military and defense customers.

CACI ( CACI ) Chief Executive John Mengucci said ​the deal would

bolster the company's ability to drive long-term growth in free

cash flow.

The transaction, likely to close in the third quarter of

fiscal 2026, is expected ​to generate a tax benefit with a

present value of about $225 million, CACI ( CACI ) said.