U.S. defense contractor CACI International is acquiring space technology provider ARKA Group for $2.6 billion from Blackstone Tactical Opportunities, expanding its presence in national security and space-based intelligence.

The deal comes amidst increased demand for defense and intelligence contracts due to geopolitical tensions, higher military spending, and investment in space, cyber, and surveillance capabilities.

ARKA’s space-based sensor systems and software, supporting national security missions for the intelligence community and U.S. Space Force, will enhance CACI’s space portfolio, providing technology for data processing and analysis for military and defense customers.

CACI’s CEO John Mengucci believes the acquisition will strengthen the company’s ability to drive long-term growth in free cash flow.

The transaction is expected to close in the third quarter of fiscal 2026 and is projected to generate a tax benefit with a present value of around $225 million, according to CACI.

Read more at Yahoo Finance: CACI expands space, defense footprint with $2.6 billion ARKA buy