The popular vote for theÂ Wash100Â continues this week! Voting turn out has been strong since the January 25th launch of the popular vote, and all of us at Executive Mosaic extend our thanks to those who have participated. If you have yet to place your ten votes for the executives that you believe will have the greatest influence on the government contracting landscape over the course of the next year, please visit theÂ Wash100 voting pageÂ by April 30th.
The current top five executives are:
In the past month the acquisition ofÂ CSRAÂ has been underway. Initially, it seemed apparent thatÂ General DynamicsÂ would be purchasing the Falls Church, VA-based government IT services contractor, but in the last week the acquisition of CSRA developed into a bidding war between General Dynamics andÂ CACI International. Here’sÂ a look at the events that transpired between the three companies and where the acquisition process currently stands.
In mid-February,Â General DynamicsÂ announced that it had agreed to purchaseÂ CSRAÂ for approximately $9.6 billion. General Dynamics said that it would pay $40.75 in cash for each share of CSRA stock, amounting to approximately $6.8 billion, and would assume CSRAâs $2.8 billion in debt. Phebe Novakovic, chairman and CEO of General Dynamics and 2018 Wash100 recipient, said that the acquisition would enable General Dynamicsâ IT business to expand its capabilities and client base and better provide IT platform services to the intelligence, defense and federal civilian sectors. Larry Prior, president and CEO of CSRA and 2018 Wash100 recipient, said that the combination of General Dynamicsâ IT business and CSRA would create an entity âwith a full spectrum of enterprise IT capabilities.â
On March 18th, however,Â CACI InternationalÂ announced its proposal to acquireÂ CSRA for $44 per share in cashÂ and stock, which comes out to approximately $7.2 billion. In aÂ company press release, CACI said that its board had unanimously voted to go ahead with the acquisition proposal. CACIâs proposal came about a month after General Dynamicsâ offer and proposed to purchase CSRA for a greater sum without inheriting the companyâs $2.8 billion debt.
A few days afterÂ CACIâs bid, General DynamicsÂ increased the value of its proposal, offering to purchase CSRA for $41.25 per share, approximately $6.9 billion in cash, as well as assuming CSRAâs $2.8 billion debt. In aÂ press releaseÂ from March 20th, General Dynamics noted that its tender offer for CSRAâs shares began on March 5thÂ and that the price increase took effect on March 20th. General Dynamics and CSRA expect to close the deal once the tender offer is completed on April 2nd. Upon completion of the acquisition, General Dynamics will run CSRA as a wholly owned subsidiary.
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