CACI International Inc., a U.S. based IT firm supporting national security missions, is most likely to purchase CSRA Inc., a IT service provider in an agreement worth USD 7.2 billion. The announcement comes a month after General Dynamics Corporation, a global aerospace & defense firm, had stated its decision to purchase CSRA Inc. for USD 6.8 billion and debt estimated at USD 2.8 billion. Reports claim that CACI has offered USD 44 per share to CSRA in contrast to General Dynamics‘ offer of USD 40.75 per share to the firm.
According to the key officials of CSRA, the firm’s board is projected to assess the acquisition bid made by CACI, that had also claimed its offer to provide the shareholders an 8% more premium as compared to that offered by General Dynamics. CACI has further stated that the deal will benefit CSRA in terms of cost-savings. Experts are of the view that the acquisition will help in building long-term client relations and will boost the presence of both the firms across high-growth markets. They have also forecast that the alliance will improve the market position of the combined entity and will add value to their joint business.
Reportedly, the fund allocation for defense activities is expected to increase substantially under the Trump administration with the introduction of new plans for modernizing IT infrastructure, resulting in new avenues for government contractors. Reliable sources state that the U.S. government is expected to shift the computing networks to the cloud space, thereby helping CSRA to gain more government defense contracts in the near future.
Incidentally, in its milCloud pact worth USD 500 million with the U.S. government, CSRA is seemingly transferring the systems of the U.S. defense department to its cloud-based platform. Researchers apparently, view the strategic business decision of CACI to purchase CSRA as a win-win situation for both the firms.