CSC, CSRA Amend Non-Compete Agreement in Public Sector Market

Computer Sciences Corp. (NYSE: CSC) has amended its non-competition pact with CSRA (NYSE: CSRA) ahead of an impending merger between CSC and Hewlett Packard Enterprise‘s (NYSE: HPE) enterprise services segment, CRN reported Monday.

Michael Novinson writes the modified agreement will ease limits on CSC’s participation in the federal, state and local government markets that were enforced after the Tysons, Virginia-based contractor merged its U.S. public sector business with Fairfax-based SRA International in November 2015 to form CSRA.

The non-compete deal between Falls Church-based CSRA and its former parent CSC was originally scheduled to remain in effect through Nov. 27, 2017.

Marilyn Crouther, senior vice president and general manager of the HPE ES U.S. public sector business, will continue in the same role for the combined company.

CSC identified the market restrictions as a “risk factor” that could affect its planned merger with the HPE enterprise services unit that currently works with some customer agencies, Novinson reported.

The new arrangement comes less than two weeks after both companies unveiled the 10 directors who will comprise the board of the future combined entity that is slated for official April 3 launch.

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