Defense contractor General Dynamics and Information technology firm CSRA today announced that they have entered into a definitive agreement under which General Dynamics will acquire all outstanding shares of CSRA for $40.75 in cash.
The transaction is valued at $9.6 billion, including the assumption of $2.8 billion in CSRA debt, the press release states.
"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."
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."
Novakovic continued, "I am very pleased to welcome CSRA's talented leadership team and employees. This combination brings together two industry leaders with highly complementary capabilities to create a strong business with approximately $9.9 billion in revenue and double-digit EBITDA margins in the consolidating Government Technology Services sector."
General Dynamics expects the transaction to be accretive to GAAP earnings per share and to free cash flow per share in 2019, and expects to generate estimated annual pre-tax cost savings of approximately 2 percent of the combined company's revenue by 2020.
We are committed to maintaining our strong credit ratings and using our robust cash flow for reduction of debt from the transaction, continuation of our dividend policy and the flexible deployment of capital, including ongoing investment in the business.
The US Navy released the final request for proposal Thursday for a multi-year contract to build the Flight III Arleigh Burke-class guided-missile destroyer.
General Dynamics was awarded $83 million contract for the execution of USS Mesa Verde (LPD 19) fiscal 2018 docking phased maintenance availability. This availability will include a combination of maintenance, modernization, and repair of USS Mesa Verde
General Dynamics has won $2.6 billion contract for the upgrade of up to 786 M1A1 configured Abrams vehicles to newly configured M1A2 System Enhancement Package Version 3
General Dynamics has won $198 million contract for the continued procurement, manufacturing, testing and delivery of AN/USC-61(C) digital modular radio (DMR) systems. The contract also includes high frequency distribution amplifier group components, spares for both systems, and engineering services to support their continued fielding and maintenance plans, US department of defense said in a statement Wednesday
General Dynamics has won a $72.5 million worth contract to upgrade US Navys USS Higgins guided-missile destroyer, the Department of defense announced Wednesday
General Dynamics has been awarded $149 million modification contract for the procurement of various quantities of rockets, warheads, motors and/or, associated components to Saudi Arabia, Afghanistan, Kenya, Jordan, Nigeria and Qatar. The contract includes procurement of M151, M274, M257, M278, M156, M264, M278 warheads and WTU-1/B rockets
General Dynamics has won $258.6 million modification contract for the upgrade of Stryker flat bottom vehicles to the double V-hull configuration
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