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General Dynamics embarks on $9.6 billion deal to capture new defense spending

The USS Truxtun (DDG-103) destroyer sits in dry dock at the General Dynamics NASSCO shipyard facility on the Elizabeth River in Norfolk, Va., on Jan. 9, 2018.

General Dynamics will buy all shares of Csra for $40.75 under the terms of the deal, a 32 percent premium from Friday’s closing price.

The deal turns General Dynamics into a $9.9 billion-a-year behemoth in government IT services, making it the second-largest firm in that sector behind Leidos of Reston, Va., and ahead of Booz Allen Hamilton, CACI and SAIC.

“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,” General Dynamics chief executive Phebe Novakovic said in a statement.

In recent years, it has focused on new opportunities such as cloud-systems integration in an attempt to double down on subsectors that are growing, winning a $498 million contract for the Defense Department’s milCloud 2.0 program.

Novakovic has used budget uncertainty and the Trump administration’s failure to fill key government positions to explain the slowdown.

“What we’re doing with this transaction is taking our good GDIT business and making it [a] better, stronger, more viable competitor over time — immediately, frankly, we believe — in that IT services space,” Novakovic told analysts.

READ MORE (Washington Post)

  • General Dynamics to buy CSRA for almost $7 billionPhys.Org
  • Stocks to watch: CSRA, Heineken, TDC, Game DigitalFinancial Times
  • General Dynamics buys cybersecurity specialist CSRA for $9.6bnFinancial Times
  • General Dynamics Buying CSRA for $6.8 BillionWall Street Journal
  • General Dynamics To Buy CSRA For $9.6 Billion To Boost Defense IT OfferingsInvestor's Business Daily
  • General Dynamics to buy rival for $6.8 billion to bolster IT unitReuters
  • General Dynamics to buy federal services provider for $6.8 billionReuters
  • General Dynamics buying CSRA in watershed federal IT dealWashington Technology
  • UPDATE 1-General Dynamics to buy govt IT contractor CSRA for $6.8 blnReuters

This post first appeared on The 5th News, please read the originial post: here

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General Dynamics embarks on $9.6 billion deal to capture new defense spending


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