CACI expands space, defense footprint with $2.6 billion ARKA buy

Dec 22 (Reuters) - U.S. defense contractor CACI International will acquire space technology provider ​ARKA Group from funds managed by ‌Blackstone Tactical Opportunities for $2.6 billion, expanding its footprint in ‌national security and space-based intelligence.

The all-cash deal, announced on Monday, comes amid surging demand for defense and intelligence contracts, driven by rising ⁠geopolitical tensions, increased ‌military spending by the United States and its allies, and greater ‍investment in space, cyber and advanced surveillance capabilities.

The acquisition will add ARKA's space-based sensor systems and software, ​which support national security missions, including ‌work for the intelligence community and the U.S. Space Force, to CACI's space portfolio. ARKA provides technology used to process and analyze data for military and defense customers.

CACI Chief ⁠Executive John Mengucci said ​the deal would bolster the ​company's ability to drive long-term growth in free cash flow.

The transaction, likely ‍to close ⁠in the third quarter of fiscal 2026, is expected to generate a tax ⁠benefit with a present value of about $225 million, CACI ‌said.

(Reporting by Akash Sriram in Bengaluru; ‌Editing by Shilpi Majumdar)