General Dynamics Increases Offer For CSRA

(RTTNews) - General Dynamics (GD) and CSRA (CSRA) said that they reached an amendment to their definitive merger agreement under which General Dynamics will acquire all outstanding shares of CSRA for $41.25 per share in cash, an increase from the prior $40.75 per share offer. The transaction is now valued at $9.7 billion, including the assumption of $2.8 billion in CSRA debt.

As per connection with the amended merger agreement, CSRA's Board of Directors determined that the previously announced unsolicited proposal from CACI International, Inc to acquire CSRA could not reasonably be expected to lead to a Company Superior Proposal.

CSRA's Board recommended that CSRA stockholders tender their shares of CSRA common stock pursuant to the General Dynamics tender offer.

As per the terms of the merger agreement, as amended, on March 5, 2018, General Dynamics commenced a cash tender offer to purchase all of the outstanding shares of CSRA common stock. Today, the offer price was increased from $40.75 per share to $41.25 per share in cash.

The tender offer and any withdrawal rights will expire on April 2, 2018, unless extended. If the tender offer is completed, the parties expect to complete the merger as soon as practicable thereafter. At the effective time of the merger, CSRA will become a wholly owned subsidiary of General Dynamics.