CSC to remain independent as firms hover to buy it

Upside of independence outweighs temptation of buyout

When Joseph Vafi, an analyst at Jefferies and Co., wrote that a private equity firm could pay $8.7 billion for Computer Sciences Corp. and earn a return of more than 25 percent over five years, the investors began to circle overhead and the phones began to ring.

Its positive cash flow, low debt and plethora of government clients make CSC a prime target for a buyout firm interested in taking the computer-services provider private, reports Bloomberg Businessweek

While large technology companies seek out new acquisition targets to expand their market presence and services, CSC is shoring up its walls to preserve its independence. CEO Mike Laphen told Bloomberg he plans to keep CSC independent because of the growth opportunities ahead and what he sees as the value of a services company that doesn’t sell its own hardware.


Related articles:

CSC makes deal for intell contractor

CSC will upgrade VA’s financial software


CSC's strategy is to expand in developing markets, gain share in more profitable services and lessen its dependence on government contracts, according to Laphen’s interview with Bloomberg.

Addressing the slew of phone calls, none of which have led to serious talks, Vice President of Corporate Development Randy Phillips told Bloomberg: “It’s not surprising, and humorous and tiring all at the same time.”

“But we like where we are,” he added. "The board likes where we are. We like the plan."

About the Author

Alysha Sideman is the online content producer for Washington Technology.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts

  • How Do You Support the Project Lifecycle?

    How do best-in-class project-based companies create and actively mature successful organizations? They find the right mix of people, processes and tools that enable them to effectively manage the project lifecycle. REGISTER for this webinar to hear how properly managing the cycle of capture, bid, accounting, execution, IPM and analysis will allow you to better manage your programs to stay on scope, schedule and budget. Learn More!

  • Sequestration, LPTA and the Top 100

    Join Washington Technology’s Editor-in-Chief Nick Wakeman as he analyzes the annual Top 100 list and reveals critical insights into how market trends have impacted its composition. You'll learn what movements of individual companies means and how the market overall is being impacted by the current budget environment, how the Top 100 rankings reflect the major trends in the market today and how the biggest companies in the market are adapting to today’s competitive environment. Learn More!