CSRA (NYSE: CSRA) has agreed to purchase Alexandria, Virginia-based information technology services contractor NES Associates for an undisclosed amount.
David Keffer, chief financial officer of CSRA, said Wednesday that the pending acquisition is in line with the Falls Church,Virginia-based company’s “long-term approach to capital allocation, as our balance sheet continues to evolve.â€
“After aggressively paying down debt, we look to add in acquisitions and opportunistic share repurchases to accelerate growth and drive shareholder value,†Keffer told investors in the fourth quarter earnings call.
CSRA expects to complete the transaction by the first half of its fiscal 2018, pending regulatory approvals and other customary closing terms.
NES Associates provides network operations, telecommunications, application architecture and implementation support services to defense and other government clients and holds spots on several contract vehicles such as the General Services Administration’s IT Schedule 70 and U.S. Navy’s SeaPort Enhanced contracts.
Larry Prior, CSRA president and CEO and an inductee into Executive Mosaic’s Wash100 for 2017, said he expects NES to bring “strong competitive advantage†as CSRA works to seek opportunities in the IT network market.
The transaction will mark CSRA’s first acquisition as a public firm since its formation in November 2015 following the merger of Computer Sciences Corp.’s public sector business and SRA International.
