Computer Sciences Corporation announced today, December 13 that it entered into an agreement to acquire Dyncorp.
The transaction is valued at approximately $950 million, including the assumption of DynCorp’s $273 million debt. Once the merger is complete, each DynCorp share will be converted into $15 in cash and $43 in market value of CSC shares.CSC expects to conclude the transaction during the first quarter of 2003, and expects the acquisition to be accretive to earnings for fiscal year 2004.
DynCorp, with revenues of $2.3 billion for the 12 months ended September 26, 2002, is said to be among the largest employee-owned information technology and outsourcing firms headquartered in the US.
The company, which employs more than 23,000 technology and technical professionals at more than 550 locations globally, focuses on the large defence, security and civil markets. Services include systems and network integration, high-tech range operations, global defence logistics and maintenance services and contingency support, homeland security services, and infrastructure management of critical defence assets.
DynCorp will become part of CSC’s Federal Sector unit, which currently has approximately 15,000 employees and is headquartered in Falls Church, Virginia.