CACI to buy Arka Group for $2.6B

Reston-based Fortune 500 government contractor CACI International announced Monday that it has entered into an agreement to acquire Danbury, Connecticut-based aerospace and defense contractor Arka Group for $2.6 billion.

The all-cash transaction would result in about 1,000 Arka employees, including about 315 software engineers, joining CACI. Arka provides space and defense technology for government agencies and the intelligence community. Its products and services include remote sensing payloads, agentic artificial intelligence software and laser-guided threat detection systems.

The transaction is expected to close in the first quarter of 2026, which is CACI’s fiscal 2026 third quarter. CACI expects to realize a tax benefit presently valued at $225 million from the transaction, which is subject to regulatory approvals and customary closing conditions.

In a statement, CACI President and CEO John Mengucci said that Arka brings “deep experience and proven performance as a best-in-class provider of national security space and defense capabilities.” He described the acquisition as “a significant step forward” in CACI’s space strategy.

“For our shareholders, the acquisition of ARKA positions CACI to capture significant future opportunities in the space domain across intelligence community, U.S. Space Force and other Department of War customers,” said Mengucci in a statement. “The combination enhances our ability to drive long-term growth in free cash flow and generate additional shareholder value.”

According to an investor presentation, CACI expects ARKA to contribute about $650 million in revenue and $145 million in EBITDA (earnings before interest, taxes, depreciation and amortization) over the next 12 months.

“I am confident that CACI will provide outstanding pathways for our employees to thrive,” Arka President and CEO Andreas Nonnenmacher said in a statement. “Our aligned mission-focused cultures and deep engineering roots create a strong foundation for future innovation and growth, and our customers will benefit right away from the expanded capabilities of the combined company.”

Wells Fargo served as exclusive financial adviser to CACI and provided committed financing for the transaction, while Gibson Dunn served as legal adviser. J.P. Morgan Securities and Evercore acted as financial advisers for ARKA, while Simpson Thacher & Bartlett acted as Arka’s legal adviser.

Founded in 1962, CACI serves intelligence and defense agencies. It has more than 25,000 employees and reported $8.6 billion in revenue for fiscal 2025.