General Dynamics to acquire Veridian

General Dynamics is to acquire Veridian Corporation in a transaction worth approximately $1.5 billion.

US defence systems giant General Dynamics is to acquire Veridian Corporation, an information systems and technology vendor.

General Dynamics is to offer $35 in cash for each outstanding Veridian share. With the assumption of Veridian’s $270 million of debt, the cost of the transaction would be approximately $1.5 billion.

The boards of directors of both companies have approved the proposed acquisition, which would be immediately accretive to General Dynamics’ earnings and cash flow. Subject to an affirmative vote by Veridian shareholders and normal regulatory approvals, the transaction is expected to close by the end of the third quarter of 2003.

Veridian, with headquarters in Arlington, VA has more than 7,300 employees in 38 states. The company anticipates sales in 2003 of approximately $1.2 billion. It has a current business backlog of $2.6 billion. General Dynamics estimates Veridian’s revenues to be $1.4 billion in 2004.

General Dynamics, with headquarters in Falls Church, VA employs approximately 57,000 people worldwide and estimates its 2003 revenues will be $15 billion.