Global aerospace and defense contractor General Dynamics has entered into an agreement to acquire CSRA, a leading IT business that reported $5 billion in revenue for Fiscal Year 2017.
General Dynamics said that it will pay $40.75 per CSRA share. That’s a 32 percent premium to its Friday closing price of $30.82. The deal includes an additional $2.8 billion in debt.
Shares of CSRA Inc., soared almost 32 percent at the opening bell Monday.
“The acquisition of CSRA represents a significant strategic step in expanding the capabilities and customer base of GDIT,” said Phebe Novakovic, chairman and chief executive officer of General Dynamics, in the release. “CSRA’s management team has created an outstanding provider of innovative, next-generation IT solutions with industry-leading margins. We see substantial opportunities to provide cost-effective IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies. The combination enables GDIT to grow revenue and profits at an accelerated rate. It will allow us to deliver even more innovative, leading-edge solutions to our customers.”
Larry Prior, CSRA’s chief executive officer and president,…