WASHINGTON ― Information technology specialist CACI has submitted an unsolicited proposal to CSRA to acquire all outstanding shares of the latter’s common stock, potentially disrupting up a $9.6 billion acquisition of CSRA by General Dynamics.
The proposal announced Sunday includes a combination of CACI common stock and cash, totaling $44 per share ($29 CACI stock, plus $15 cash).
The founder of government contracts consulting and legal firm McAleese & Associates, Jim McAleese, noted this is an 8 percent premium increase over the $40.75 all-cash-per-share agreement between General Dynamics and CSRA.
According to financial analysis firm Martin Wolf, the transaction value of CACI’s bid is $7.2 billion, edging out General Dynamics’ $6.8 billion proposal.
Although initial reports indicated General Dynamics would stick with its bid, a company statement released Tuesday morning announced an amended merger agreement. The new proposal will have GD acquire all outstanding shares of CSRA for $41.25 per share in cash, an increase from the original $40.75 per share offer.
Following this increased offer, the transaction is now valued at $9.7 billion, including GD’s assumption of $2.8 billion in CSRA debt.
In making the decision to stick with General Dynamics, “CSRA’s Board of Directors took into account various factors, including among others, the value, certainty of value, certainty of closing, and speed to closing of the General Dynamics offer, as amended, as compared to the CACI proposal” the statement says.