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| Press Release

Wired News – General Dynamics Acquires CSRA

Stock Monitor: CSRA Inc. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 14, 2018 / has just released a free research report on General Dynamics Corp. (NYSE: GD). If you want access to this report all you need to do is sign up now by clicking the following link as the Company's latest news hit the wire. On February 12, 2018, the Company, which is a global aerospace and defense Company, announced that it has inked an agreement to acquire CSRA Inc. (NYSE: CSRA), a government IT Company, for approximately $6.8 billion in cash plus $2.8 billion in debt. Register today and get access to over 1000 Free Research Reports by joining our site below: is focused on giving you timely information and the inside line on companies that matter to you. This morning, General Dynamics and CSRA Inc. most recent news is on our radar >and our team decided to put out a fantastic report on the company that is now available for free below:

Details of the Deal

  • As per the agreement terms, a subsidiary of General Dynamics will acquire all outstanding shares of CSRA's common stock for $40.75 per share in cash. The tender offer is subject to customary conditions, including antitrust clearance and the tender of a majority of the outstanding shares of CSRA's common stock.
  • Following the completion of the tender offer, General Dynamics will acquire all remaining shares not tendered in the offer through a merger at the same price as in the tender offer.
  • General Dynamics plans to fund the acquisition via available cash and new debt financing.
  • The transaction, expected to close in the first half of 2018, has been unanimously approved by the Board of Directors of both Companies.
  • Stone Key Group, LLC served as exclusive financial advisor, and Jenner & Block LLP served as legal counsel to General Dynamics. Evercore and Macquarie Capital served as financial advisors, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to CSRA.
  • General Dynamics expects the transaction to be accretive to GAAP earnings per share and to free cash flow per share in 2019. The transaction is also expected to generate estimated annual pre-tax cost savings of 2% of the combined sales by 2020.
  • A robust cash flow for the reduction of debt from the transaction allows General Dynamics for rapid deleveraging and maintaining capital deployment flexibility.

As per reports, post announcement of the news, shares of CSRA soared 31% in midday trading.

Acquisition will Help General Dynamics Provide Cost-Effective Internet Technology Solutions

Phebe Novakovic, Chairman and Chief Executive Officer (CEO) of General Dynamics, mentioned that the acquisition of CSRA represents a significant strategic step in expanding the capabilities and customer base of GDIT. General Dynamics sees substantial opportunities to provide cost-effective IT solutions and services to the Department of Defense, the intelligence community, and federal civilian agencies. Novakovic added that the combination enables GDIT to grow revenue and profits at an accelerated rate. It will allow the Company to deliver even more innovative, leading-edge solutions to its customers.

Novakovic further stated that this combination brings together two industry leaders with highly complementary capabilities to create a strong business with approximately $9.9 billion in revenue and double-digit EBITDA margins in the consolidating Government Technology Services sector.

About General Dynamics Corp.

Founded in 1952 and headquartered in Falls Church, Virginia, General Dynamics is a global aerospace and defense Company. The Company's broad portfolio of products and services includes business aviation; combat vehicles, weapons systems, and munitions; C4ISR and IT solutions; and shipbuilding.

About General Dynamics Information Technology (GDIT)

Headquartered in Fairfax, Virginia, GDIT provides information technology, systems engineering, professional services, and simulation and training to customers in the defense, federal civilian government, health, homeland security, intelligence, state and local government, and commercial sectors.

About CSRA Inc.

CSRA brings together government IT professionals, emerging technologies, and the brightest, cutting-edge advisors in the industry. Headquartered in Falls Church, Virginia, the Company was formed through the combination of CSC's North American Public-Sector business and SRA International in 2015.

Stock Performance Snapshot

February 13, 2018 - At Tuesday's closing bell, General Dynamics' stock climbed 1.09%, ending the trading session at $211.81.

Volume traded for the day: 2.53 million shares, which was above the 3-month average volume of 1.49 million shares.

Stock performance in the last month – up 0.58%; previous three-month period – up 6.03%; past twelve-month period – up 13.51%; and year-to-date - up 4.11%

After yesterday's close, General Dynamics' market cap was at $61.44 billion.

Price to Earnings (P/E) ratio was at 22.17.

The stock has a dividend yield of 1.59%.

The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 0.2% at the end of the session.


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