10:26 AM EDT, 09/16/2024 (MT Newswires) -- CACI International ( CACI ) said Monday that it agreed to purchase Azure Summit Technology in an all cash deal worth about $1.28 billion, bolstering its offerings for the defense industry.

Azure Summit is a radio frequency hardware and software maker. The deal is expected to expand CACI ( CACI ) offerings in intelligence, surveillance and reconnaissance, electronic warfare and signals intelligence, Chief Executive John Mengucci said in a statement.

The transaction, which requires approval from regulators, is expected to complete in the second quarter of fiscal 2025. Shares of CACI ( CACI ), which provides expertise and technology to government customers, were up 4% in Monday trading.

"For our shareholders, the acquisition of Azure Summit is compelling both strategically and financially," Mengucci said. "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."

The deal is estimated to be "immediately accretive across multiple financial metrics," Mengucci added. The company anticipates Azure Summit to contribute about $440 million in revenue in the next 12 months, according to an investor presentation. CACI ( CACI ) said it projects a tax benefit of $194 million over the next 15 years.

"The alignment between our cultures, technology and engineering heritage will drive continued innovation and growth under CACI ( CACI ) leadership in the future," Azure Summit CEO Thomas Green said. "More importantly, our mission-focused customers will share the benefits from the combined business almost immediately."

Last month, CACI ( CACI ) reported a 25% annual jump in its fiscal fourth-quarter earnings to $6.61 a share, while revenue advanced 20% to $2.04 billion. At the time, the company issued an outlook range for fiscal 2025 adjusted EPS of $22.44 to $23.33 and revenue between $7.9 billion and $8.1 billion.

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