CACI Offers $7.2B Cash & Stock for CSRA

CACI International (NYSE: CACI) has offered to acquire CSRA (NYSE: CSRA) for approximately $7.2 billion in cash and stock, or $44.00 per share, in a bid to form a combined entity that will deliver mission services and enterprise support offerings to government clients.

Arlington, Virginia-based CACI said Sunday its board unanimously cleared the acquisition proposal that is not subject to any funding contingency and includes a $15 per share in cash and 0.184 shares of common stock for each CSRA share.

CACI added that it expects to record $165 million in annual net run-rate cost synergies and anticipates the proposed acquisition to conclude by July 31, subject to approvals by CSRA and CACI shareholders.

J.P. Morgan Securities acts as CACI’s lead financial adviser, while Gibson, Dunn & Crutcher LLP serves as legal adviser to the government information technology services contractor.

CACI’s proposal came a month after General Dynamics (NYSE: GD) agreed to acquire CSRA for approximately $6.8 billion in cash, or $40.75 per share, and $2.8 billion in assumed net debt in a move to establish a combined government IT services provider.

Falls Church-based General Dynamics said Sunday it has received all the needed regulatory clearances and has funds to close the deal in early April.

The aerospace and defense contractor noted that its tender offer for CSRA’s shares started March 5 and is slated to expire on April 2 and announced the expiration of the waiting period with respect to the offer under the Hart-Scott-Rodino Antitrust Improvements Act.

CSRA confirmed that it received an unsolicited offer from CACI and that its board will consult its financial and legal advisers to consider and assess the latter company’s offer.

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