KippsDeSanto & Co. Advises IDL Solutions, Inc. on its Sale to CACI International, Inc.

KippsDeSanto & Co. is pleased to announce the acquisition of our client, IDL Solutions, Inc. (“IDL”), by CACI International, Inc. (“CACI”).  IDL will fall under CACI’s newly formed Federal Civilian Solutions business group, and complements its November 2012 acquisition of healthcare IT (“HIT”) provider, Emergint Technologies, Inc.  The acquisition will enable CACI to expand its presence in the $33.5 billion addressable healthcare market and the Federal health insurance area in particular.  This marked KippsDeSanto’s fifth Federal HIT transaction in 2012.

Headquartered in Germantown, WI, with Federal offices in Reston, VA, IDL is an industry-leading SEI CMMI Level 3 IT services company specializing in “big data” analytics, application development, and business process management primarily for the HIT services market.  IDL’s main customer is the Centers for Medicare and Medicaid Services (“CMS”) within the Department of Health and Human Services (“HHS”), for which the Company possesses the Enterprise System Development (“ESD”) vehicle and provides direct mission-critical support by addressing data collection, storage, analysis, and dissemination needs, associated with the administration of Medicare, Medicaid, and other related public health programs.  With a firm presence in five of CMS’ seven organizational centers, IDL possesses a strong understanding of the customer’s needs on an enterprise level and is well positioned to be at the forefront of future requirements.  IDL also holds major contract vehicles and relationships with the Food and Drug Administration (“FDA”), National Institutes of Health (“NIH”), and other strategic civilian agencies, providing further growth opportunities.

Customers desire to partner with IDL given its proven track record of success, highly talented and experienced professionals, and advanced technology competencies.  In particular, IDL’s “big data” capabilities enable healthcare customers to turn large volumes of data into actionable intelligence, improve customer service, minimize fraudulent activities, and promote better patient care.  Leveraging its expertise in addressing these market challenges, IDL has successfully established itself as a leader within the Federal HIT market and is poised to capitalize on growing needs in business intelligence, data analytics, and data warehousing.

We believe this transaction demonstrates several key trends in the government technology M&A environment:

• Strong buyer appetite for companies well-positioned with mission-oriented customers, and oriented toward those market segments anticipating strong future growth, such as HIT, big data, and cyber and intelligence.
• Strategic buyers continue to target M&A opportunities that address strategic gaps or augment an existing presence with substantive depth in those priority areas.
• Given macro-economic and Federal budget uncertainty, buyers seek targets with sustainable growth potential evidenced by actionable new business opportunities.
• Continued emphasis on and attraction to high value, long-term contracts and contracting vehicles (e.g., CMS ESD).

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives. For more information on this particular transaction, please contact one of the deal team leaders below.

PRESS RELEASE

CACI Acquires IDL Solutions, Inc.

Acquisition Positions Company for Strategic Growth in Healthcare IT Market

ARLINGTON, Va.–(BUSINESS WIRE)– CACI International Inc. (NYSE: CACI) announced today that it has acquired IDL Solutions, Inc., a leading provider of information technology solutions, applications, and mission-critical systems support to healthcare IT clients and other civilian agencies. This acquisition expands CACI’s presence in the $33.5 billion addressable healthcare market and the federal health insurance area in particular, and complements its November 2012 acquisition of healthcare IT provider Emergint Technologies, Inc.

Founded in 1993, IDL Solutions has over 100 employees and is headquartered in Germantown, Wisconsin with federal offices in Reston, Virginia. The company leverages “big data” analytics to help healthcare organizations gain new insights from large volumes of health data, which in turn drives cost-effective business processes, improves patient care, and increases mission success. Its workforce has extensive experience in application development, data analytics, and business automation and IT support. The company has achieved the Software Engineering Institute’s globally recognized, independent assessment of CMMI® Level 3.

IDL Solutions has major contract vehicles at the Department of Health and Human Services (HHS), specifically with the Centers for Medicare and Medicaid Services, Food and Drug Administration, and National Institutes of Health. Its 2012 revenue is expected to be approximately $18.5 million, and the acquisition is expected to be slightly accretive to CACI’s earnings per share during its first 12 months. Terms of the transaction were not disclosed.

John Mengucci, CACI Chief Operating Officer and President of U.S. Operations, said, “With our acquisition of IDL Solutions, CACI has specialized capabilities to address the challenges of clients in the federal civilian healthcare and health insurance spaces. In particular, IDL Solutions’ expertise in big data will enable us to provide the critical data collection, storage, analysis, and dissemination capabilities that enable healthcare organizations to improve customer service, minimize fraudulent activities, and promote better patient care.”

According to Dan Allen, CACI President and Chief Executive Officer, “CACI’s acquisition of IDL Solutions, coupled with our recent acquisition of Emergint Technologies, is an important step in our strategy to build CACI’s healthcare IT business. This acquisition falls under our newly formed Federal Civilian Solutions business group, which includes healthcare, and aligns with our ongoing growth strategy to gain a larger share of the rapidly growing Healthcare IT market.”

IDL Solutions, Inc. President and Chief Executive Officer Baly Ambegaoker said, “We look forward to bringing our committed team and healthcare analytics capabilities to CACI and growing together as we continue to address mission challenges across the federal healthcare IT landscape.”

CACI provides information solutions and services in support of national security missions and government transformation for Intelligence, Defense, and Federal Civilian clients. A member of the Fortune 1000 Largest Companies and the Russell 2000 Index, CACI provides dynamic careers for approximately 14,900 employees working in over 120 offices worldwide. Visit www.caci.com.