FALLS CHURCH, Va., April 3, 2018 /PRNewswire/ -- General Dynamics
(NYSE: GD) has completed its acquisition of CSRA Inc. (NYSE: CSRA).
The transaction, valued at approximately $9.7 billion, is expected to be accretive to GAAP
earnings per share and to free cash flow per share in 2019, and is
expected to generate estimated annual pre-tax cost savings of
approximately 2 percent of the combined company's revenue by
2020.
CSRA is now part of General Dynamics Information Technology.
This combination creates a premier provider of high-tech IT
solutions to the government IT market.
"The combined CSRA and GDIT offers innovative,
competitive and compelling solutions to our customers, and
provides attractive free cash flow coupled with good incremental
return on capital for investors," said Phebe Novakovic, chairman and chief executive
officer of General Dynamics. "GDIT is positioned to deliver
cost-effective, next-generation IT solutions and services to the
Department of Defense, the intelligence community and federal
civilian agencies as they modernize their information systems."
As a result of the closing of the acquisition, General Dynamics
intends to cause all shares of CSRA common stock to be delisted
from the NYSE, and CSRA will no longer have reporting obligations
under the Securities Exchange Act of 1934.
About General Dynamics
Headquartered in Falls Church,
Virginia, General Dynamics (NYSE: GD) is a global aerospace
and defense company that offers a broad portfolio of products and
services business aviation; combat vehicles, weapon systems and
munitions; C4ISR and IT solutions; and shipbuilding. The company's
2017 revenue was $31 billion. More
information is available at www.generaldynamics.com.
Certain statements made in this press release, including any
statements as to future results of operations and financial
projections, may constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. Forward-looking statements are based on management's
expectations, estimates, projections and assumptions. These
statements are not guarantees of future performance and involve
certain risks and uncertainties, which are difficult to
predict. Therefore, actual future results and trends may
differ materially from what is forecast in forward-looking
statements due to a variety of factors. Additional information
regarding these factors is contained in the company's filings with
the Securities and Exchange Commission, including, without
limitation, its Annual Report on Form 10-K and its Quarterly
Reports on Form 10-Q. All forward-looking statements speak only as
of the date they were made. The company does not undertake any
obligation to update or publicly release any revisions to any
forward-looking statements to reflect events, circumstances or
changes in expectations after the date of this press
release.
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SOURCE General Dynamics