CSC-DynCorp merger vote set
- By Gail Repsher Emery
- Feb 19, 2003
DynCorp stockholders will vote March 7 on a proposed merger with Computer Sciences Corp., CSC officials said Feb. 19.
El Segundo, Calif., CSC announced Dec. 13, its intent to acquire Reston, Va., DynCorp in a transaction valued at approximately $950 million.
DynCorp, which employs more than 23,000 people worldwide, is among the largest employee-owned technology and outsourcing firms headquartered in the United States. For the 12 months ended Sept. 26, DynCorp pulled in about $2.3 billion in revenue. CSC has nearly 64,000 employees and reported revenue of $11.3 billion for the 12 months ended Dec. 27. The company does business with every agency in the U.S. government. Its major competitors include Electronic Data Systems Corp. and IBM Corp.
"The combined federal business [of the two firms] will solidify CSC's position as a top 10 government contractor to both civil and defense agencies," said CSC Chairman and Chief Executive Officer Van B. Honeycutt.
Upon completion of the merger, CSC will derive approximately $6 billion in annual revenue from the federal government and employ nearly 38,000 people serving the U.S. government globally, according to CSC officials.
CSC ranked No. 6 on Washington Technology's 2002 Top 100 systems integrators in the federal information technology market, while DynCorp ranked No. 22. The combined companies would rank No. 3 on the list, behind Lockheed Martin Corp. and Northrop Grumman Corp., which recently completed its purchase of TRW Inc.
"Including the contribution from the DynCorp acquisition, we see overall CSC revenue growth exceeding 25 percent, which means total revenue of more than $14.5 billion, for fiscal 2004," Honeycutt said.