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General Dynamics Buys CSRA in $9.6 Billion Deal

Feb. 21, 2018
General Dynamics is growing its government IT business through the acquisition if IT service provider CSRA.

General Dynamics has agreed to acquire government IT services provider CSRA for a total package worth about $9.6 billion. General Dynamics will pay $40.75 in cash for each share of CSRA stock and assume $2.8 billion in net debt from the latter firm. Both companies’ boards of directors approved the acquisition. The two firms expect the transaction to take place during the first half of 2018, subject to the antitrust clearance process and other closing conditions.

The deal will fold CSRA into General Dynamics’ information systems and technology business, its largest unit. It will result in a large combined IT platform capable of providing combat software and combat-ready computing equipment. The acquisition will be funded by means of General Dynamics’ debt financing and existing cash.

The acquisition is expected to help General Dynamics’ IT business to expand its client base and capabilities, and provide opportunities to deliver IT platforms and services to different customer groups—including federal civilian, defense, and intelligence sectors. The combined company will have about $9.9 billion in revenue, as well as double-digit earnings before interest, taxes, depreciation, and amortization margins.

About the Author

Jack Browne | Technical Contributor

Jack Browne, Technical Contributor, has worked in technical publishing for over 30 years. He managed the content and production of three technical journals while at the American Institute of Physics, including Medical Physics and the Journal of Vacuum Science & Technology. He has been a Publisher and Editor for Penton Media, started the firm’s Wireless Symposium & Exhibition trade show in 1993, and currently serves as Technical Contributor for that company's Microwaves & RF magazine. Browne, who holds a BS in Mathematics from City College of New York and BA degrees in English and Philosophy from Fordham University, is a member of the IEEE.

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