by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.
In a move aimed at gaining even more critical mass in its information technology services, General Dynamics has agreed to acquire CSRA in a deal valued at $9.6 billion, including the assumption of $2.8 billion in CSRA debt.
CSRA, which had sales of almost $5 billion in FY17 (ended March 31), was formed in 2015 when Computer Sciences Corporation (CSC) merged its North American Public Sector business and SRA International (formerly Systems Research and Applications Corporation) into a new public firm, CSRA. Today, CSRA is a pure play IT services provider to the U.S. government. The company, which focuses on modernizing legacy systems and provides network and asset protection, is composed of three broad solution-based divisions: a Next Generation Technology division that handles challenges in cloud infrastructure, big data analytics, cybersecurity, and mobility; an Enterprise Services IT sector that delivers a wide range of technology-enabled solutions and services aimed at improving customer efficiencies; and a Mission and Scientific Solutions operation that focuses on healthcare, environmental, science, and threat reduction offerings.
CSRA is one of the largest systems integrators for the government that provides information technology (IT), mission- and operations-related services across the U.S. federal government to the Department of Defense, intelligence community and homeland security, civil, and healthcare agencies, as well as certain state and local government agencies. The company is also a major range-service contractor, supplying operations and maintenance services for aircraft flight tests, weapons tests and development, and manned and unmanned space missions.
Current key programs at CSRA include the U.S. Army’s Logistics Modernization Program, the Flight School XXI program at the U.S. Army Aviation Center in Fort Rucker, connectivity operations under the ONE-Net, and information technology support services for the U.S. Navy and Marines, as well as range of communications and IT support services for various U.S. military commands throughout the world.
CSRA’s future could be strong indeed, as recent budget allocations are focusing on cybersecurity and repairing IT infrastructure. The company also said that there are other opportunities in the federal space, including data analytics and modernization applications, for an as-a-service delivery model. These avenues, coupled with a growing defense budget, could translate into strong performance for CSRA under its new owner.
The operation will be integrated into the General Dynamics Information Systems and Technology division once the deal closes later in 2018.
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