CACI fails to hijack GD acquisition of CSRA

US information technology giant CACI’s unsolicited proposal to acquire all outstanding shares of CSRA’s common stock has forced General Dynamics to increase its original $9.6 billion bid.

CACI’s proposal featured a combination of CACI common stock and cash, totaling $44 per share ($29 CACI stock, plus $15 cash) – an estimated 8 per cent premium increase over the $40.75 all-cash-per-share agreement struck by General Dynamics and CSRA.

In response, General Dynamics today announced an amended merger agreement that will see it acquire all outstanding shares of CSRA for $41.25 per share in cash, valuing the deal at $9.7 billion.

“CSRA’s Board of Directors took into account various factors, including among others, the value, certainty of value, certainty of closing, and speed to closing of the General Dynamics offer, as amended, as compared to the CACI proposal,” said General Dynamics in a statement.

Experts said the CSRA deal is likely to shake up the federal IT landscape as General Dynamics targets larger government contracts.

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