CACI in $42 Million Deal for QuesTech
CACI International Inc. of Arlington yesterday said it plans to acquire QuesTech Inc., a Falls Church-based defense contractor, for about $42 million as part of efforts to expand its information security business.</br></br>CACI, which provides software and support services mostly to U.S. government agencies, said it will pay $18.38 for each outstanding share of QuesTech, a premium of 27 percent over the company's Monday stock price of $14.50 on the Nasdaq Stock Market. The acquisition includes about $35 million in cash and $7 million in assumed debt.</br></br>News of the planned acquisition sent QuesTech shares climbing to $16.87 1/2 yesterday, up $2.37 1/2. CACI shares closed at $21.31 1/4, up 81 1/4 cents, on the Nasdaq.</br></br>The acquisition, which does not include QuesTech's packaging division, has been approved by QuesTech's board of directors and awaits shareholder and regulatory approval. CACI's chief financial officer, James Allen, said he expects the sale to close in three to four months. The combined company would have annual revenue of about $350 million, with more than 4,000 employees in the United States and abroad.</br></br>CACI has sought to expand into the information security market and gain a foothold in the U.S. intelligence community. In January, the company appointed Thomas McDermott, a former deputy director for information systems security at the National Security Agency, to head its information security operations. The QuesTech acquisition will bolster CACI's cache of security clearances and expand the pool of government contracts on which CACI can bid, Allen said.