CACI bolsters national security capabilities with IdentityE2E

One we missed… highly unusual, I know. A couple of weeks ago, CACI Limited acquired Identity E2E Limited (IdentityE2E), a specialist UK technology consultancy and engineering company focused on national security.

Founded in 2013, IdentityE2E brings expertise in biometrics, DevOps, cloud engineering, and Quality Assurance Testing (QAT) to CACI's roster. The company has established a strong position with central government clients and has been involved in high-profile Critical National Infrastructure (CNI) projects. While financial terms weren't disclosed, Companies House records show IdentityE2E employed an average of 35 people in FY24.

For CACI Ltd, this acquisition represents another strategic addition to its national security and critical infrastructure business. Tracy Weir, who took over as President and CEO in November 2024, commented that IdentityE2E's "important position in the government space is a testament to both the capability and calibre of their people."

The UK arm of CACI appears to be on an acquisition spree, having also acquired Rowe IT in May 2024 (software engineering, systems integration, and data analytics for government and defence clients) and Cyber-Duck in November 2023 (a digital transformation agency specialising in UX and open-source technologies). These deals are helping CACI build scale in specialised areas through organic growth and strategic acquisitions.

CACI Ltd's results for the year ending 30th June 2024 showed revenues of £165m, up 14.8% year-on-year. Acquisitions contributed £7.6m to turnover in FY24 (compared to just £890K in FY23), indicating an accelerating inorganic growth strategy. With strong cash reserves (£61.1m, up from £50.1m in 2023), healthy profit performance (operating profit of £31.9m, up 15%), and a clearly stated strategy "to profitably grow the Company, both organically and through acquisition," CACI alooks set for continued expansion in the UK market.

Globally, US-headquartered parent company CACI International Inc. has acquired >40 companies over its life, including five in the last five years. Its largest acquisition came earlier this year when it acquired Azure Summit Technology for $1.3B. The parent company's focus on national security capabilities in the US appears to be mirrored in the UK subsidiary's acquisition strategy, highlighting a coordinated global approach to building expertise in this sector.

For IdentityE2E, joining CACI offers greater scale and resources. Co-founder and CEO Richard Garner noted that the deal gives them "more power, resources and support to provide scalable, adaptive solutions to organisations of national importance."

With UK government organisations continuing to prioritise digital transformation and national security investments, CACI appears to be strategically positioning itself as a major player in this space through targeted acquisitions of specialised capability providers.

Posted by: Georgina O'Toole at 09:34

Tags: M&A   CNI   acquisitions   public+sector   national security