General Dynamics: Cash Offer To CSRA Superior Than CACI, To Proceed With Deal

(RTTNews) - General Dynamics (GD), an aerospace and defense company, announced late Sunday that it intends to proceed with its tender offer to acquire CSRA Inc. (CSRA) for $40.75 per share in cash. According to the company, its proposed acquisition of CSRA offers superior value for CSRA's shareholders than the unsolicited stock and cash offer of CACI International Inc.

General Dynamics said it continues to believe that this combination creates a premier provider of high-tech IT solutions to the Government Technology Services market.

The company also said it has secured all necessary regulatory approvals and has the funding in place to complete the transaction in early April.

It was on February 12 that both companies announced their agreement for the deal for about $9.6 billion in cash, including the assumption of $2.8 billion in CSRA debt. The tender offer for CSRA shares commenced on March 5, and is scheduled to expire on April 2, with the acquisition of CSRA expected to close shortly thereafter.

As previously disclosed, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act with respect to the tender offer has expired.

Meanwhile, on March 18, CACI International announced an unsolicited offer proposing to acquire CSRA for a combination of CACI common stock based on a fixed exchange ratio of 0.184 shares of CACI stock for each share of CSRA common stock and $15.00 per share of cash. The offer implies current CSRA shareholders will own approximately 55 percent of the resulting entity.

General Dynamics believes strongly that its proposed acquisition of CSRA offers both superior and certain value for the CSRA shareholders.

The company noted that CACI offer is inferior to its cash offer of $40.75 per share even prior to factoring in the significant market risk associated with a CACI transaction closing many months in the future with a fixed exchange ratio.