General Dynamics has officially completed its acquisition of CSRA Inc., as part of General Dynamics Information Technology (GDIT), for a combination that creates a premier provider of high-tech IT solutions to the government IT market.
The transaction, which is valued at approximately $9.7 billion, is expected to be accretive to GAAP earnings per share and to free cash flow per share in 2019, and to generate estimated annual pre-tax cost savings of approximately 2% of the combined company’s revenue by 2020.
“The combined CSRA and GDIT offers innovative, competitive and compelling solutions to our customers, and provides attractive free cash flow coupled with good incremental return on capital for investors,” explains Phebe Novakovic, chairman and chief executive officer of General Dynamics.
“GDIT is positioned to deliver cost-effective, next-generation IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies as they modernize their information systems.”
(Learn More about CSRA, and what they are adding to GDIT, in a combination that creates a premier provider of high-tech IT solutions to the government IT market. Courtesy of General Dynamics and YouTube)
As a result of the closing of the acquisition, General Dynamics intends to cause all shares of CSRA common stock to be delisted from the NYSE, and CSRA will no longer have reporting obligations under the Securities Exchange Act of 1934.
As a trusted systems integrator for more than 50 years, General Dynamics Information Technology provides information technology (IT), systems engineering, professional services and simulation and training to customers in the defense, federal civilian government, health, homeland security, intelligence, state and local government and commercial sectors.
(Learn More about General Dynamics Information Technologies capabilities and services, Courtesy of General Dynamics Information Technologies and YouTube)
