CSC officially separates into two companies
CSRA Inc. has completed its separation from Falls Church-based CSC Corp. and acquired SRA International, the companies announced Monday.
CSRA, which has 19,000 employees and pro-forma annual revenues of $5.5 billion, is now independently traded on the New York Stock Exchange.
CSC announced earlier this year that it would spin off its public-sector business from its commercial and international business. Later, it announced it would acquire Fairfax-based SRA International for $390 million and $1 billion in assumed debt.
CSRA will provide IT services to the U.S. government, including helping modernize legacy systems, protecting their networks and improving efficiencies.
“A little more than six months ago, CSC’s board of directors determined that two leading pure-play companies, focused exclusively on their respective customer segments, would best serve the interests of our clients, employees and other stakeholders,” said Mike Lawrie, who will remain CSC president and CEO and is now chairman of CSRA. “The debut of CSRA and the completion of the merger with SRA accelerate our transformational goals and enable both CSC and CSRA to drive innovation and better address the demands of the markets they serve.”
Larry Prior, who has been executive vice president and general manager of CSC’s North American Public Sector group, has become CEO of CSRA.
Under the separation agreement, stockholders who held CSC common stock at the close of business Nov. 18 received one CSRA share for every one share of CSC common stock they owned.
SRA officially merged with CSRA on Monday, becoming a wholly-owned subsidiary of the company. Former SRA shareholders received $390 million about 25 million CSRA shares. These shareholders will own 15 percent of the outstanding common shares.
SRA was privately owned by a shareholder group led by Providence Equity Partners and SRA’s founder, Ernst Volgenau, and other members of the management team.
SRA was taken private four years ago and registered in July with the Securities and Exchange Commission for an initial public offering. CSC announced at the end of August that its spin off would merge with SRA.