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
 Top 100 Promo 2016
contracts DB


  • 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. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More