General Dynamics sweetens offer for CSRA, fending off CACI bid

WASHINGTON — Falls Church-based General Dynamics has raised its all-cash offer for information technology contractor CSRA two days after smaller government contractor CACI made a bid that topped General Dynamics’ original offer.

CSRA says it favors the new offer from General Dynamics.

While General Dynamics’ sweetened offer is still lower than CACI’s — raising the bid to $41.25 per share compared to CACI’s cash and stock offer of $44 per share — CSRA said in a statement its board of directors has determined Arlington-based CACI’s offer “could not reasonably be expected to lead to a Company Superior Proposal, as defined by terms of its merger agreement.”

CSRA says it took several factors into consideration, including the certainty of value, certainty of closing and speed of closing with the General Dynamics merger.

CSRA again recommends shareholders approve the General Dynamics offer, it said.

General Dynamics’ new offer values CSRA at $6.9 billion. It also includes the assumption of $2.8 billion in debt.

General Dynamics would get CSRA’s cybersecurity and data-analytics business and information technology contracts that would make General Dynamics the second-largest federal IT provider, according to Bloomberg data.

Jeff Clabaugh

Jeff Clabaugh has spent 20 years covering the Washington region's economy and financial markets for WTOP as part of a partnership with the Washington Business Journal, and officially joined the WTOP newsroom staff in January 2016.

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