CSC completes DynCorp acquisition
- By William Welsh
- Mar 07, 2003
Computer Sciences Corp. has completed the acquisition of DynCorp, further solidifying the company's position as one of the top 10 government information technology contractors, CSC announced today.
The acquisition strengthens CSC in the areas of federal outsourcing, base and range operations, telecommunications, training and simulation, healthcare and homeland security.
The announcement followed the approval of the acquisition by DynCorp shareholders at a special stockholders meeting held the same day.
CSC of El Segundo, Calif., paid $931 million in cash, stock and debt assumption for the purchase. CSC paid $162 million in cash, $463 million in stock and assumed 306 million in DynCorp's debt, CSC spokesman Mike Dickerson said.
Each of the approximately 10,800,000 outstanding DynCorp shares was converted into $15 cash and 1.3940 shares of CSC stock for the deal.
With the announcement, DynCorp of Reston, Va., becomes part of CSC's Federal Sector business unit, which is based in Falls Church, Va. The combined federal sector organization is expected to derive about $6 billion in annual revenue from the federal government and have about 40,000 employees serving the U.S. government.
"This transaction provides CSC with increased access to the federal information technology services market and expands our service delivery capabilities," said Van B. Honeycutt, CSC's chairman and chief executive officer.
"As a result, CSC is ideally positioned to provide on a global basis a greater breadth of end-to-end solutions to both civil agencies and the Department of Defense," he said.
William Welsh is a freelance writer covering IT and defense technology.