CSC takes another step toward split
Computer Sciences Corp. has taken its steps toward separating into two companies with a set of filings with the SEC.
There were few surprises in the filings today other than the name of the government business – Computer Sciences Government Services Inc. Lawrence Prior III will be the president and CEO. He currently is executive vice president and general manager of CSC North America Public Sector. Current, CSC Chairman and CEO Mike Lawrie will retain the chairman title as well as continuing to be chairman and CEO of CSC.
The commercial business also will retain CSC’s global government business and the Computer Sciences Corp. name.
The filings with the Security and Exchange Commission leave blank who will fill the other leadership posts under Prior. The company said as those individuals are identified the SEC filings will be amended.
The split, which doesn’t require a shareholder vote, was announced in May and is expected to close by October.
CSC shareholders will received a $10.50 per share dividend at closing as well as a share of stock in the government business for each share of CSC stock they hold.
According to SEC filing, the North American public sector business had $4.1 billion in revenue for the year ended April 3 and net income of $252 million. The company’s revenue is split between defense and intelligence at $2.1 billion and civil at $2 billion. Defense was down 8.7 percent from the year before, while civil was up 9.5 percent.
The split is the culmination of a several year turnaround effort put in place by Lawrie when he came on board as CEO in March 2012. Moves have included divestitures, layoffs and a restructuring.
The split will create two publicly traded companies. It doesn’t mean that the struggles of either company will be over but it does mean that each can focus all of their energy, attention and resources on their core markets.
And hopefully, they'll spend a little time coming up with a better name that Computer Sciences Government Services Inc. or Computer Sciences GS. But there is plenty of other priorities ahead of that.
Posted by Nick Wakeman on Jul 14, 2015 at 9:33 AM