General Dynamics (NYSE: GD) has increased the value of its proposal to acquire CSRA (NYSE: CSRA) from $40.75 per share to $41.25 per share, or approximately $6.9 billion in cash, under an amended merger agreement.
General Dynamics said Tuesday it will also assume $2.8 billion in net debt from the Falls Church, Virginia-based government IT services contractor as part of the amended deal, bringing the total value of the transaction to approximately $9.7 billion.
General Dynamics noted that its tender offer for CSRAâs shares began March 5Â and that the increase in the offer price took effect Tuesday.
Both companies expect to close the merger upon the completion of the tender offer, which is scheduled to expire on April 2, and General Dynamics will run CSRA as a wholly owned subsidiaryÂ upon the dealâs closure.
Stone Key GroupÂ andÂ Jenner & Block LLPÂ respectively act as General Dynamicsâ financial and legal advisers in the merger agreement.
Paul, Weiss, Rifkind, Wharton & GarrisonÂ LLPÂ serves as CSRA’s legal counsel, whileÂ Macquarie Capital and Evercore advise the firm on the transactionâs financial aspects.