C-Cubed employs 400 staff, most of who have high-level security clearance. It provides technology for network enterprise solutions, systems integration, integrated logistics support, combat systems, and deep submergence engineering. The company made $49 million in revenue for the year ending June 20, 2003, with operating income of $3.2 million.
C-Cubed’s clients include the Defense Advanced Research Projects Agency, Inland Revenue Service, and the Space and Naval Warfare Systems Center, Charleston.
The acquisition can be seen as a defensive move by CACI, which exists in the rapidly consolidating US government IT services sector. Top-tier defense contractors have acquired two of CACI’s rivals in recent months. Lockheed Martin Corp [LMT] earlier this month agreed to buy Titan Corp [TTN] for $2.4 billion, after paying $658 million for a substantial portion of the government sector business of Affiliated Computer Services Inc [ACS], which gave it an additional 5,800 employees.
In June, General Dynamics Corp [GD] signed a deal to buy Veridian Corp for $1.5 billion in cash and assumed debt, adding $2 billion in additional revenue to the company’s IT and network systems business with clients including US Air Force, the State of Texas, the US Navy, the US Army, and the US Coast Guard. Prior to this in December, Computer Sciences Corp [CSC] snapped up DynCorp for $1 billion.
IT services providers are scaling up to compete for a slew of major long-term government contracts, originating mainly from the new Department of Homeland Security, which is now the single largest US federal agency with a budget of $37.7 billion to invest in IT systems and infrastructure.
The sector is also experiencing major investment from the General Services Administration Millenia project, which has a budget of $25 billion to invest in federal government IT services projects over an indefinite time period.
This article was based on material originally published by ComputerWire.
