“The cultural fit of our two companies will enable our mutual success going forward,” CACI CEO John Mengucci said.

CACI International has bought fellow solution provider Applied Insight in an all-cash deal that should boost its capabilities in Amazon Web Services, cloud migration, cybersecurity and productivity for government agency customers.

CACI, No. 19 on CRN’s 2024 Solution Provider 500, bought Applied Insight from Acacia Group, a Fulton, Md.-based specialist investment firm. Both solution providers are based in Reston, Va. Applied Insight is No. 174 on the list. Terms of the deal were not disclosed.

“The cultural fit of our two companies will enable our mutual success going forward,” CACI CEO John Mengucci (pictured) said in a statement Tuesday. “I am pleased to welcome the talented Applied Insight employees to our team and am confident they will thrive at CACI.”

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CACI Buys Applied Insight

CRN has reached out to CACI, Applied Insight and Acacia Group for additional comment.

The Applied Insight deal comes on the heels of another acquisition recently announced by CACI: $1.3 billion in cash for Azure Summit Technology, an engineering firm whose offerings include radio frequency (RF) hardware and software technologies.

CACI expects the Azure Summit acquisition to close in the second quarter of its 2025 fiscal year, according to a company statement.

In August, CACI reported earnings for its fiscal 2024 fourth quarter, ended June 30. The solution provider reported $2 billion in revenue, up 20 percent year over year, and net income of $135 million, up 25 percent year over year.

For the full fiscal year, CACI reported $7.7 billion in revenue, up 14 percent year over year, and $420 million in net income, up 9 percent year over year.

CACI executives expect between $7.9 billion and $8.1 billion in revenue for fiscal year 2025 and non-GAAP adjusted net income between $505 million and $525 million, according to the solution provider.

During the earnings call for that quarter, CEO Mengucci called CACI “a serial acquirer” and said the M&A market was improving, according to a call transcript. Areas of interest for acquisition at the time included cloud, artificial intelligence and what the U.S. Department of Defense calls C4ISR–command, control, communications, computers, intelligence, surveillance and reconnaissance.

“We’re not buying revenue. We’re buying capabilities, customer relationships that allow us to sit on these calls for a number of years talking about how that acquisition one, two, three, seven, 10 years back set us up very, very well,” the CEO said.

In July, Applied Insight achieved Amazon Web Services (AWS) Premier Tier Services Partner status, logging more than 200 completed AWS cloud migrations across 16 public sector and enterprise organizations, according to the solution provider.

In January, Applied Insight itself purchased data services company Zavda Technologies, according to a statement at the time.

Acacia Group, meanwhile, merged its portfolio company MajorKey Technologies, a member of CRN’s MSP 500 list, with Clagno back in June, according to a statement at the time.

Other companies in Acacia’s portfolio include technology consulting firms The Baer Group and Kopius, Atlassian partner and MSP Isos Technology, and cloud transformation platform provider Kion. Acacia previously sold ID Technologies to CACI in 2021, according to Acacia’s website.