CSC to buy Covansys
- By Michael Hardy
- Apr 26, 2007
Computer Sciences Corp. will acquire Covansys Corp. for about $1.3 billion in cash, the two companies said in a joint announcement. The boards of both companies have approved the transaction.
CSC, based in El Segundo, Calif., expects the acquisition to strengthen its presence in India, which was already solid, according to the company.
"With this action, we have significantly accelerated our India offshore business plan with the addition of a U.S. and international direct sales force," said Mike Laphen, CSC president and chief operating officer.
Covansys's shareholders still must approve the sale, but if they do, the companies expect the deal to close sometime in CSC's second quarter, which ends Sept. 30. Covansys is based in Farmington Hills, Mich.
Covansys has about 9,000 employees and had annual sales of $455 million in 2006. The company provides strategic outsourcing and technology for health care, financial services, retail and distribution, manufacturing, telecommunications and high-tech sectors.
CSC has about 77,000 employees and reported revenue of $14.7 billion in fiscal 2006. The company ranks No. 5
on Washington Technology's 2006 Top 100 list
of the largest federal IT contractors. The 2007 Top 100 list is due out May 14.
Technology journalist Michael Hardy is a former FCW editor.