General Dynamics and CSRA executives explain the rationale behind their $6.8 billion deal and it is all about budgets and bigger opportunities. by Ty Trumbull • Feb 13, 2018. The deal values CSRA at roughly 12.1 times adjusted EBITDA based on CSRA’s fiscal 2017 results, though the company is now deep within its fiscal 2018. /Producer <123B9F7D0175FDDAF9143BE33B89B0B2CB3B12> CSRA's shares jumped 31.4 percent to $40.50 in premarket trading on Monday. General Dynamics (GD) kicked-off fiscal 2019 in style by reporting solid headlines numbers which surpassed analyst estimates. I am Howard Rubel, Vice President of Investor Relations for General Dynamics. %PDF-1.4 ���u�2I��M���RfNQ,�a��-XF�.�x�ib��Bc�������9r#p^�d龚��.�j��ӗ ��v�|A�&���˼� %�÷�I����̽#�y/�}M���튅 * {����l���>���| H#upq)�t��@�ܣ�O�����m�Շ�1>���t5�:��[:����3x2�8L@S����e��3%v�� He speaks with Julie Hyman and Vonnie Quinn on "Bloomberg Markets." /StemV 0 Please note, this event is being recorded. General Dynamics's $40.75-per-share cash offer represents a premium of 32 percent to CSRA stock's closing price on Friday. General Dynamics stock has increased modestly by 1.5% in the pre … You can unsubscribe to any of the investor alerts you are subscribed to by visiting the ‘unsubscribe’ section below. If you experience any issues with … EX-99.A.5.B Exhibit (a)(5)(B) From the Desk of the President Date: Feb. 12, 2018 To: GDIT employees Subject: General Dynamics to acquire CSRA This morning, General Dynamics announced that it has entered into an agreement to acquire CSRA. << /Type /Font You can sign up for additional alert options at any time. After submitting your request, you will receive an activation email to the requested email address. << /Type /FontDescriptor Leidos Holdings Inc. and ahead of Booz Allen Hamilton Holding Corp., according to a Feb. 12 General Dynamics presentation based on 2018 estimated revenues. /ToUnicode 5 0 R FALLS CHURCH, Va. – General Dynamics (NYSE: GD) and CSRA (NYSE: CSRA) today announced that they have entered into a definitive agreement under which General Dynamics will acquire all outstanding shares of CSRA for $40.75 in cash. At General Dynamics, we promise to treat your data with respect and will not share your information with any third party. /Count 18 ��f��%D��p3ԇ��=��m#XeMu. In the pre-market trade, CSRA is trading at $39.20 up $8.38 or 27.19 percent. /CapHeight 662.1094 6 0 obj << /Type /Pages /Registry <2E24CF26C3> << /Filter /FlateDecode /Length 47176 >> ���~��H��R����}��uzg^[K �9X��ѓSd.f�E���6~i� ����PG�i |hHo�nv�h˷��n����28)˯ߺ׾����y�`��h,�ȸ�1����41��Rm���h^�R��.�o�y�Z�/�0J^%��{�B��R�p��U@��-?��L�QV�)u .�NߚĨQf�[��ed9���VR�jx!o�Y8˙�i�Ѯ�ՐP5(%��e�\��d�oiF���ݜ����Svp��q��DZl���G��J'V��f70� �� � /Keywords <674FE80D626C9EAF8D0151B76DC1F2E086645089CE990072F27D94> endobj EBITDA margin rose to 12.6% in 2019 8 0 obj ... plus the acquisition of CSRA at the beginning of the second quarter last year. CSRA rose 1% to 40.95, barely above the General Dynamics offer. General Dynamics said Monday that it agreed to buy CSRA Inc. for $40.75 per share in cash.The transaction is valued at $9.6 billion, including the assumption of $2.8 billion in CSRA debt. CSRA is now part of General Dynamics Information Technology. General Dynamics, which also makes tanks and U.S. Navy ships, said the deal is valued at $9.6 billion, including $2.8 billion in CSRA debt. The transaction is valued at $9.6 billion, including the assumption of $2.8 billion in CSRA debt. The transaction is expected to close in the first half of 2018. CSRA, which provides services such as cybersecurity and data analytics, gives the firm more heft as defense spending rises and technology contracts get bigger and more complex. ��\�m��&�|�g�f�3��c\SI0��yf�Uv����+��w'�쉩Ҿ�޹���8�dʳ"��Vx@&����U}�فL�gi)i�j"". The company plans to fund the deal via available cash and new debt financing. stream [Operator Instructions] Please note, this event is being recorded. Revenue in 2019 was $8.4 billion even after divesting or exiting lines of business having revenue of $1.3 billion per annum. stream 5 0 obj endobj CSRA sold its headquarters to Boston-based Marcus Partners, a real estate investment firm, for $33 million. Good morning and welcome to the General Dynamics Second Quarter 2019 Earnings Conference Call. /FontName /QLHMVG#2BTimes#20New#20Roman endobj Once the transaction is complete, CSRA will be combined with GDIT. endobj 2019-08-29 reuters.com - (Reuters) - The U.S. General Services Administration and the Defense Department said on Thursday they awarded a cloud computing contract worth $7.6 billion to General Dynamics Corp’s CSRA LLC and its partners. S&P lowers ratings outlook on General Dynamics to negative over CSRA deal Author Emmanuel Louis Bacani S&P Global Ratings revised the ratings outlook on General Dynamics Corp. to negative from stable after the defense contractor announced its acquisition of technology consultancy CSRA Inc. for $9.6 billion, including $2.8 billion of its debt. I would now like to turn the conference over to Howard Rubel, Vice President of Investor Relations. 2 0 obj This despite CSRA… On April 3, 2018, General Dynamics Corporation, a Delaware corporation (the “ Company ”), filed with the U.S. Securities and Exchange Commission (the “ Commission ”) a Current Report on Form 8-K (the “ Initial 8-K ”) to disclose that it had completed its previously announced acquisition of CSRA Inc., … General Dynamics said that it will pay $40.75 per CSRA share. FALLS CHURCH, Va. – General Dynamics (NYSE: GD) has completed its acquisition of CSRA Inc. (NYSE: CSRA). Markets. >> Good morning, and welcome to the General Dynamics conference call and presentation regarding the acquisition of CSRA, Inc. All participants on the phone will be in listen only mode. Last year, General Dynamics Information Technology continued to integrate CSRA and to reshape its portfolio. On February 12, 2018, General Dynamics announced it was buying CSRA for about $9.6 billion. {H���r[����=��ʳS4�zA%�4I�A���'�z`'t�g�^-��8�hLbՍ�����.��?x�=�� Defense 3 0 obj endstream /Kids [19 0 R 22 0 R 24 0 R 30 0 R 27 0 R 32 0 R 35 0 R 38 0 R 41 0 R 44 0 R 47 0 R 50 0 R 53 0 R 56 0 R 59 0 R 62 0 R 65 0 R 68 0 R] The company closed its $9.7 billion purchase of IT services-heavy CSRA Inc in the middle of the year. /Subtype /Type0 /Subtype /CIDFontType2 /BaseFont /QLHMVG#2BTimes#20New#20Roman How CSRA expands General Dynamics' public safety footprint. << /Type /Catalog /Pages 3 0 R >> The transaction, valued at … /FontDescriptor 7 0 R /FontFile2 8 0 R The acquisition was completed in April 2018. The deal will see General Dynamics pay $40.75 per CSRA share – a 32 percent premium to its Friday closing price of $30.82. The transaction, valued at approximately $9.7 billion, is expected to be accretive to GAAP earnings per share and to free cash flow per share in 2019, and is expected to generate estimated annual pre-tax cost savings of approximately 2 percent of the combined … >> (�x�y.5#]�%��/��q�/*���[��um�Q�;�iY6��E9D�*��'�@��v:uA��'�У����ߵ��u��@��{,����U�Y�q� �nM�m:$���6g���7�Y(�z�0�Х,�x]C�Yz�@��#.��{di�v��$߸�OQG'qwݧ?�p�\�� T!����NU���p�ԟE�*=�*�W{���Җ�jbSخ��z�FA��Z�jϲw����(ØU�~�}z����u���|D�p��:'>걘��d�D\y�R�%�e�~��';����$ ֛r]d�J�t�\a�˽��]�Ɠ�E�O�kxy��I� .��w���&u�z)jt"G;Z�tyM��/vNL���6Zq���7J�/8�}%�����LA|P�W&9�q�]A�gUTኰ�Y�,͈}5l�b��.�?X`��䔾� �f��������/� .Ix�������3.E�dZ-E�?Z@�ȧ q�S�N��&�Y���0��6�Y��;�C�v���D.�J�f���n-�������2q |T(L�o�hpu�ͮ[P�I,�-����Q��ٱ�z��R{K���ow�*h�䏗=���Ƽ��7��a����'��|��j�¼KN��+�3�a�l?���^H��:�#�]�>1�^�]���֯��*�/[���ש S���� ��h|W�ne�(�+58���ܰ"2(�Ke{h}�̝��^�τ����e������ �X��5�����hz��b(Z�������i��wc]t���Q��&���ۉ�w�T�wP7����`����Q�3�,�+����j}ՑJ�4?�ϋ2����UL�*O)�Wr���q����y_�W�[�@ �(G�4�+��ĭ�.��R;/�t ]iEu! /ModDate <1345EA0C626D9DAC8E064CBE67D9F0E69264559BC5891C> U.S. awards $7.6 bln cloud contract to General Dynamics. You must click the activation link in order to complete your subscription. /W [3 [250] 38 [667] 75 [500] 72 [444] 70 [444] 78 [500] 87 [278] 68 [444] 83 [500] 85 [333] 82 [500] 76 [278] 69 [500] 91 [500] 79 [278] 90 [722] 73 [333] 41 [556] 80 [778] 27 [500] 16 [333] 46 [722] 81 [500] 74 [500] 86 [389] 71 [500] 88 [500] 92 [500] 89 [500] 29 [278] 58 [944] 53 [667] 23 [500] 21 [500] 24 [500] 54 [556] 36 [722] 11 [333] 20 [500] 26 [500] 22 [500] 19 [500] 17 [250] 12 [333] 40 [611] 51 [556] 44 [333] 28 [500] 134 [500] 15 [250] 50 [722] 42 [722] 39 [722] 179 [444] 180 [444] 48 [889] 43 [722] 55 [611] 18 [278] 182 [333] 84 [500] 45 [389] 77 [278] 47 [611] 30 [278] 52 [722] 60 [722] 93 [444] 37 [667] 57 [722] 49 [722] 10 [180] 14 [564] 32 [564] 167 [549] 25 [500] 8 [833] 56 [722] 7 [500] 62 [333] 64 [333] 9 [778] 129 [500] 13 [500]] That’s a 32 per cent premium to its Friday closing price of $30.82. Please go ahead, sir. General Dynamics Corp., the maker of Abrams tanks and nuclear submarines, is making a record bet on reinvigorating its information-technology business.The U.S. defense contractor agreed to buy CSRA Inc. for about $6.8 billion to expand its computer-services offerings for government agencies and military customers. :��`��U /BaseFont /QLHMVG#2BTimes#20New#20Roman endobj >> /CIDToGIDMap /Identity /Descent -216.3086 Please go ahead sir. /ItalicAngle 0 /Ascent 891.1133 You can unsubscribe to any of the investor alerts you are subscribed to by visiting the ‘unsubscribe’ section below. 2 provider of federal IT services, trailing only Leidos Holdings Inc. CSRA, which provides services such as cybersecurity and data analytics, gives General Dynamics more heft as defense spending rises under President Donald Trump and computer-technology contracts get bigger and more complex. The company saw healthy order flow from aviation and defense sectors which would be considered as a positive sign by investors. General Dynamics Corporation (“General Dynamics”) made available an investor presentation relating to the previously announced proposed merger (the “Merger”) of General Dynamics and CSRA Inc. (“CSRA”). >> X General Dynamics will pay $40.75 per share cash for CSRA, a 32% premium from Friday's close. /Subject <6F5293> Stock Monitor: CSRA Inc. Post Earnings Reporting LONDON, UK / ACCESSWIRE / February 14, 2018 / Active-Investors.com has just released a free research report on General Dynamics Corp. (NYSE: GD). The acquisition will make General Dynamics the No. endobj However, increased expenses dragged profits by 7%. /CreationDate <1345EA0C626D9DAC8E064CBE67D9F3EB9264559BC5891C> General Dynamics Corp ... Vice President of Investor Relations. /FontBBox [-568.3594 -306.6406 2045.898 1039.551] General Dynamics rose 0.5%. General Dynamics, by comparison, is up 50% over the past three years, and government IT rivals Science Applications International and CACI are up 92.9% and 69.7%, respectively. At General Dynamics, we promise to treat your data with respect and will not share your information with any third party. Bloomberg Government's Robert Levinson discusses General Dynamics Corp.'s agreement to purchase CSRA Inc. for about $6.8 billion. /XHeight 447.2656 << /Type /Font CSRA was formed in … At General Dynamics, we promise to treat your data with respect and will not share your information with any third party. << /Author <123B9F7D0175E2F0D35D12E379CCA3F3DB3D16D586D0543CEA3FB99F5762BD26F0C057A0D65B3F95F17ADDDF5856E74DE68544451EA9FF5C9D> /Flags 32 GD CSRA CSRA is an excellent fit with GDIT. “The acquisition of CSRA represents a … You can unsubscribe to any of the investor alerts you are subscribed to by visiting the ‘unsubscribe’ section below. Operating earnings were $628 million with a 7.5% margin. /CIDSystemInfo << /Ordering <2624C52AD2F7FA59> CSRA holders will receive $40.75 a share in cash, General Dynamics said in … /Creator <123B9F7D0175FDDAF9143BE33B89B0B2CB3B12> /Supplement 0 ��T?��%w�Mx����g %���� 7 0 obj Aerospace and defense multinational General Dynamics is acquiring government IT contractor CSRA for $9.6 billion, including $2.8 billion in CSRA debt. fN�MF�0�!�:���Oe_a[�������z��@��������e�U�����/�)�3�*[�;Fq�|�q�E��N�O�+|�I�e�c���[&[Ah�����`���H�gd�:g#&�}!7}_*�_�P'���T��)#���6�e,4�1�EXS�����dP�`�/��A���|�GR��7�k��3S�Sw���|G�5E���}��G�fF:? I would now like to turn the Conference over to Howard Rubel, Vice President of Relations... Buying CSRA for about $ 6.8 billion information Technology continued to integrate CSRA general dynamics csra investor presentation! The year trading at $ 39.20 up $ 8.38 or 27.19 percent Markets. @! That it will pay $ 40.75 per CSRA share investor Relations 31.4 percent to $ in. 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