Aronson said Oct. 15 that the earnings before interest, taxes, depreciation and amortization valuation for Six3 marks one of its higher multiples in recent years.
Tim Schmitt, vice president at Aronson Capital Partners, writes the firm projects the transaction to raise CACI’s generally accepted accounting principles earnings per share by at least 5 percent in fiscal 2014 and its diluted adjusted EPS by at least 10 percent.
Nearly 20 percent of Six3 Systems’ revenue comes from cybersecurity and 80 percent from C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) and intelligence, according to Aronson.
Prime contracts account for 80 percent of Six3’s revenue stream and each of the company’s contracts individually represent less than 10 percent of its revenue, the consulting firm says.
Schmitt writes Six3 has adjusted its EBITDA margin to 14 percent and CACI expects its market to expand by $15 billion through the Six3 buy.