© edhar yralaits dreamstime.com General | February 15, 2018
General Dynamics to acquire CSRA for $9.6 billion
General Dynamics and CSRA have entered into a definitive agreement under which General Dynamics will acquire all outstanding shares of CSRA for USD 40.75 in cash.
The transaction is valued at USD 9.6 billion, including the assumption of USD 2.8 billion in CSRA debt. "The acquisition of CSRA represents a significant strategic step in expanding the capabilities and customer base of GDIT," said Phebe Novakovic, chairman and chief executive officer of General Dynamics. "CSRA's management team has created an outstanding provider of innovative, next-generation IT solutions with industry-leading margins. We see substantial opportunities to provide cost-effective IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies. The combination enables GDIT to grow revenue and profits at an accelerated rate. It will allow us to deliver even more innovative, leading-edge solutions to our customers." Novakovic continues. The combination of the companies will create a strong business with approximately USD 9.9 billion in revenue and double-digit EBITDA margins. Larry Prior, chief executive officer and president of CSRA, said, "Our combination with General Dynamics represents an excellent outcome for CSRA's stockholders, employees and customers. It builds on strong shared values, culture and a passion for serving our customers' missions. We believe that this combination creates a clear, differentiated leader in the Federal IT sector, with a full spectrum of enterprise IT capabilities, including unique depth in Next-Gen offerings in conjunction with our commercial IT alliance partners." The tender offer is subject to customary conditions, including antitrust clearance and the tender of a majority of the outstanding shares of CSRA common stock. General Dynamics expects to complete the acquisition in the first half of 2018.