KippsDeSanto & Co. is pleased to send you the attached press release announcing the acquisition of our client, TechniGraphics, Inc. (“TechniGraphics”), by CACI International Inc. (“CACI”). CACI acquired TechniGraphics to deepen its geospatial intelligence (“GEOINT”) capabilities and expand its presence within Intelligence Community (“IC”) customers. The transaction closed on November 1st, 2010.
Headquartered in Wooster, Ohio, with significant operations in Fort Collins, Colorado, and Madrid, Spain, TechniGraphics is a leading provider of visual information solutions to the National Geospatial-Intelligence Agency (“NGA”), the Department of Homeland Security (“DHS”), and foreign ministries of defense. The Company is widely acknowledged as a leader in data capture and conversion, verification and validation, and 3-D content and analysis solutions, providing customers with high quality, rectified imagery and mission-critical digital map data. Furthermore, the Company’s holistic service approach, discriminating intellectual property, extensive training program, and deep-rooted customer relationships provide for an ideal GEOINT platform in today’s attractive NGA contracting environment.
We believe this transaction demonstrates several key trends in the government services M&A environment:
- Large contractors are aggressively looking to penetrate IC mission areas by acquiring in-demand capabilities, entrenched customer relationships, and proprietary know-how.
- Heightened customer focus on GEOINT solutions and their increasing role in intelligence initiatives – further evidenced by several large NGA contract opportunities, both announced and upcoming, that will be central to imagery, mapping, and analysis efforts.
- Key positions on long-term, mission-critical IC contract vehicles / programs can be significant for sellers seeking premium valuations and favorable terms.
- Revenue visibility, robust margins, and solid reputation remain at the forefront of industry acquisition criteria.
KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.
We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives. For more information on this particular transaction, please contact one of our senior professionals.
CACI Announces Intent to Acquire TechniGraphics, Inc.
ARLINGTON, VA, OCTOBER 18, 2010 – CACI International Inc (NYSE:CACI) announced today that it has signed a definitive agreement to acquire TechniGraphics, Inc., a leading provider of imagery and geospatial services, including digital maps, to the U.S. Intelligence Community. TechniGraphics’ products form the basis for intelligence analysis, military operational planning, disaster relief planning, and operations and other mapping requirements. This acquisition solidifies CACI’s competency in the mission-critical intelligence space and sustains a long-term commitment to sophisticated intelligence solutions. Closing is anticipated by November 1, 2010.
Founded in 1982, TechniGraphics is a 450-person company headquartered in Wooster, Ohio, with additional locations in Fort Collins, Colorado and Madrid, Spain. TechniGraphics provides mission-essential geospatial data, services and solutions. They have distinguished themselves on long-term contracts through dynamic management, quality production, and introduction of intellectual property to enhance IT solutions. TechniGraphics has a seasoned management team with refined insights into evolving needs and capabilities within government and industry. Their highly developed recruiting and training model attracts exceptional talent that is then trained at “TechniGraphics University.” Approximately 85 percent of the 426 employees possess security clearances and the company’s principal customers are the U. S. Intelligence Community, Department of Defense, Department of Homeland Security, and allied governments. TechniGraphics’ revenue in calendar year 2010 is expected to be $46 million. The acquisition is expected to be solidly accretive to CACI’s earnings per share during its first 12 months.
Acquisition of TechniGraphics furthers CACI’s strategy to grow and invest in capabilities that serve the intelligence market. Key elements of this strategy are to diversify CACI’s work and offerings within the Intelligence Community, focus on core intelligence mission areas with particular emphasis on those that are enduring, and develop capabilities in market segments adjacent to those where CACI has a presence. TechniGraphics increases CACI’s already strong presence in this arena and adds an essential geospatial element to its core competencies.
CACI President of U.S. Operations Bill Fairl said, “We are pleased to announce our intent to bring TechniGraphics, Inc into CACI. Their strong revenue growth is a clear demonstration of their quality performance, superb leadership and highly professional workforce. The company’s culture and emphasis on their customers’ mission success makes them a perfect fit for CACI.”
Paul Cofoni, CACI President and Chief Executive Officer, stated, “Acquisition of TechniGraphics makes CACI a prominent provider of geospatial data for the Intelligence Community and those it serves. This move into a core intelligence mission area affirms our commitment to providing and building world-class intelligence capabilities and builds on more than a decade of experience providing end-to-end intelligence solutions for our government customer base. We look forward to integrating TechniGraphics into CACI and optimizing growth opportunities in imagery and geospatial products and services for the Intelligence Community and other customer spaces.”
CACI provides professional services and IT solutions needed for defense, intelligence, homeland security, and IT modernization and government transformation. We deliver enterprise IT and network services; data, information, and knowledge management services; business system solutions; logistics and material readiness; C4ISR integration services; cyber solutions; integrated security and intelligence solutions; and program management and SETA support services. CACI services and solutions help our federal clients provide for national security, improve communications and collaboration, secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. CACI is a member of the Fortune 1000 Largest Companies and the Russell 2000 index. CACI provides dynamic careers for approximately 12,900 employees working in over 120 offices in the U.S. and Europe. Visit CACI on the web at www.caci.com and www.asymmetricthreat.net.