CACI Acquires Emergint (CACI) (GIB) (MANT)

CACI International Inc. (CACI) recently completed its previously announced acquisition of Emergint Technologies, Inc.

Employing about 300 people with headquarters in Louisville, Kentucky, Emergint provides emerging technology solutions focused on the data-driven needs of national health organizations.

The solution provided by Emergint offers a wide range health data integration and analysis solutions, management and IT consulting, and data and records management. These healthcare-focused IT related services support the missions of federal and state customers.

Founded in 1999, the company has contract vehicles with key health-focused federal agencies, including the Centers for Disease Control and Prevention, National Institutes of Health, and U.S. Food and Drug Administration.

Emergint is expected to generate revenues of $42 million in 2012 and CACI is hopeful about the acquisition being accretive to the bottom line in the first twelve months.

This acquisition builds on CACI’s healthcare IT capability and expands its presence in the growing healthcare IT market.

The acquisition appears to be quite a profitable one for CACI International as it will strengthen the company’s potential in the healthcare IT industry. Management stated that with the support of Emergint’s data analytics services and its strong associations with national health organizations, the company is likely to fortify its foothold in the growing healthcare IT arena. The acquisition of Emergint will thus pave the way for new growth opportunities for the company in the critical healthcare IT market.

Previously, CACI International acquired Delta Solutions and Technologies Inc. for expanding its business system solutions and government transformation arenas. The company believes the acquisition of Delta Solutions will be vital in the long run as the federal government continually focuses on achieving clean audit opinions while making better spending decisions.

Meanwhile, earnings estimates for 2013 have been more or less static in the last few days after the company reported in line results for the first quarter.

Hence, we maintain our Neutral recommendation on CACI International which competes with bigwigs like CGI Group, Inc. (GIB) and ManTech International Corporation (MANT).

Our recommendation is supported by a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.