Jon Illingworth

Jon Illingworth followed up by asking for comments on CACI's M&A pipeline, specifically any niche capabilities they might be looking to fill and the overall M&A environment.

Answer

President and CEO John Mengucci reiterated CACI's gap-driven M&A approach, focusing on technology, sensors, and software applications that align with their strategic sweet spot. He noted that while the pipeline is showing some activity, opportunities are generally more technology-focused and still in the early stages of development.

Jon Illingworth asked about CACI's international opportunity, considering increased NATO budgets and capability gaps in Europe, and which areas CACI is targeting for growth. He also inquired about the expanding M&A pipeline, specifically niche capabilities CACI might seek to acquire, and general comments on the M&A environment.

Answer

CEO John Mengucci noted the heightened global urgency for defense, particularly in electronic warfare, following recent world events. CACI has expanded sales to 15 NATO countries and is assessing demand in seven others, focusing on SIGINT, EW, and counter-UAS technology, initially through FMS and now direct commercial sales. He mentioned future steps include exploring licensing or co-production relationships within borders. Mengucci stated CACI's M&A approach is gap-driven, with pipeline opportunities leaning towards technology (sensors, software applications) that fit their strategic sweet spot, acknowledging it's an active area of interest at an early stage.