CACI to Acquire L-3's NSS Business

CACI International Inc. announced that it has entered into an agreement to acquire all the outstanding stock of L-3 National Security Solutions Inc. (NSS) for $550M in cash.  NSS provides enterprise IT, cyber, and intelligence services to various government military, intelligence and federal civilian agencies.  The business generated over $1B in revenues with an adjusted EBITDA of $68M.

Ken Asbury, CACI President and CEO states: "The NSS acquisition strongly reinforces our strategic growth plan. I am confident the complementary, high-end solutions gained will strengthen our competitive position. This transaction adds depth and breadth to our intelligence, cyber, and C4 solutions and services to meet our nations' evolving and most critical national security challenges. We welcome the highly skilled, experienced, and exceptionally talented NSS employees to CACI."

Michael Strianese, L-3 CEO states:  “The sale of L-3 NSS to CACI aligns directly with this commitment and further sharpens our focus on our higher-returning defense electronics, communications and ISR businesses. The proceeds from the sale will provide L-3 with additional flexibility to continue focusing on a disciplined and balanced capital allocation strategy to drive shareholder value and enhance the market-leading products and systems we provide to our customers.”

L-3 is the first of the prime contractors who have disclosed their intentions to sell off their IT business to actually pull the trigger.  The deal is expected to close in the first quarter of 2016.  Deutsche Bank Securities Inc. is serving as financial advisor and Simpson Thacher & Bartlett LLP as legal advisor to L-3.