GD finishes Veridian deal

General Dynamics Corp. completed its acquisition Aug. 11 of Veridian Corp. More than 80 percent of Veridian shareholders approved the sale.

Falls Church, Va.-based General Dynamics paid $35 cash for each outstanding share of Arlington, Va.-based Veridian. With the assumption of Veridian's $263 million of debt, the cost of the transaction is approximately $1.5 billion.

When the deal was announced, Veridian's stock was trading at $27.35. After that, it traded near the offer price. The company, which went public in May 2002, had a 52-week range of $17.50 to $34.99. Veridian was ranked No. 22 on Washington Technology's Top 100 list.

General Dynamics stock traded at $78.90 Aug. 11. The company has a 52-week range of $50 to $88.02. It was ranked No. 7 on the Top 100.

Veridian's four divisions, employing 7,300 people, will become part of two businesses within General Dynamics Information Systems and Technology group.

Veridian's Engineering, Information Solutions and Systems divisions are joining General Dynamics Advanced Information Systems. Veridian's Information Technology Services division is becoming part of General Dynamics Network Systems.

The transaction was first announced June 9. It cleared the mandatory government waiting period July 28.