CACI is on a Buying Spree; Eyeing Lockheed's IT Business

Reuters is reporting that CACI is the leading contender for Lockheed Martin's government IT business, moving ahead of other bidders including Leidos and Engility.  If true, this would make the next few months a busy time for CACI's M&A machine as it had earlier announced a $550M deal for L-3's National Security Solutions business.  Both deals would make CACI one of the largest government services contractors in the US.

Lockheed's government IT business is comprised of the company's Information Systems & Global Solutions (IS&GS) segment and part of its Missile & Fire Control segment.  Annual revenues for the combined business was initially estimated at around $6B but is now expected to be between $4.5B and $5B.  The rumored purchase price is in the $4B range and will be in the form of a Reverse Morris Trust deal for the assets which mitigates a potentially large tax bill.

Lockheed is expected to make a final decision on what to do with the business by early 2016.