Computer Sciences Corp. (NYSE: CSC) CEO Mike Lawrie said Thursday he will step down from his roles as chairman and a member of the board of directors at the government technology services spinoffÂ CSRAÂ (NYSE: CSRA) August 9.
Lawrie announced his departure from the CSRA board approximatelyÂ one month after CSC announced its intent to merge with the enterprise services segment of Hewlett Packard Enterprise (NYSE: HPE) to create aÂ company with $26 billion in total annual projected sales and approximately 11 percent of thatÂ in the public sector, or $2.86 billion.
CSC entered a two-year non-compete agreement with restrictions onÂ federal government activity that took effect upon CSRA’s November 2015 spinoffÂ from the former parent but may acquire business in the field, an exhibit in aÂ November 2015Â Securities and Exchange Commission filing says.
The agreement allows Tysons, Virginia-based CSC toÂ acquire a business that derives 20 percent of revenue or less inÂ the U.S. public sector but requires the company to “use all commercially reasonable efforts to sell the portion of the business” within six months of the acquisition.
CSRA holds a right of first refusal to purchase that portion on the same terms and conditions CSC offers to a prospective buyer, according to the exhibit.
Lawrie told investors in May CSCÂ has “all options” on the table without specifics and said the company would start to work toward aÂ potential decision after the transaction with HPE closes inÂ March 2017.
CSRA’s board hasÂ electedÂ Lead Independent Director Nancy Killefer to succeed Lawrie as chair pending her re-election at the company’s shareholder meeting August 9.