General Dynamics has acquired CSRA, a provider of technology and cybersecurity solutions for government. The transaction is valued at $9.6 billion. The combined entity will be one of the largest players in the government technology market.
General Dynamics will acquire all outstanding shares of CSRA for $40.75 in cash. The company is also taking on $2.8 billion in debt from CSRA.
“We see substantial opportunities to provide cost-effective IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies,” Phebe Novakovic, chairman and chief executive officer of General Dynamics said in a statement on the deal.
While much of the focus of the deal is on the federal side, CSRA also brings a significant state and local business to the combined company. CSRA is the only Medicaid Management Information System (MMIS) and Health Benefit Exchange (HBE) provider with federal, state and commercial healthcare expertise. In addition to healthcare, CSRA has also provided technology solutions for state-CIO offices and Departments of Transportation.
General Dynamics has increased its presence in the state and local marketplace in recent years. As CivSource previously reported, the company implemented a next generation 911 system for Morgan County, Ohio. General Dynamics also works with CMS to provide Medicare solutions. The combined entity will have a significant a Medicare and Medicaid services business.