CACI International has completed its $2.6-billion acquisition of ARKA Group in Connecticut through an all-cash deal aimed at expanding its space-based intelligence capabilities.
ARKA brings electro-optical/infrared and hyperspectral imaging sensors along with artificial intelligence-powered software to generate geospatial data for defense applications.
The takeover also adds more than 1,100 ARKA employees to CACI.
ARKA was previously owned by funds overseen by Blackstone Tactical Opportunities, an asset management organization headquartered in New York.
Backing ‘Long-Term Vision’
CACI noted that ARKA’s spatial sensors will enhance its existing capabilities for land, sea, and air operations while improving work across signals intelligence efforts.
It added that ARKA’s AI software will help integrate multiple intelligence sources to address the evolving needs of federal customers, including the US Space Force, the broader US Department of Defense, and the US Intelligence Community.
“ARKA purposefully accelerates our space market strategy while adding technologies that strengthen and expand our position in this rapidly growing domain,” said John Mengucci, CEO and president at CACI.
“As the threat environment grows more complex, this acquisition advances our long-term vision to deliver integrated, mission-critical space and ground capabilities that strengthen national security,” he added.
Wells Fargo served as CACI’s financial adviser and provided financing for the transaction, while Gibson Dunn acted as legal counsel.
JP Morgan Securities and Evercore advised ARKA, with Simpson Thacher & Bartlett serving as its legal adviser.
