Growth and Sale of CSRA

 

The combination creates the premier provider of high-tech IT solutions to Government Technology Services market. With approximately 9.9 billion in revenue and strong double-digit EBITDA margins, the combined GDIT and CSRA is well-positioned to serve its customers’ current and evolving mission requirements expected to generate run-rate pre-tax cost synergies of approximately 2% of combined sales by 2020Accretive to earnings and free cash flow per share in 2019Robust cash flow allows for rapid deleveraging and maintaining capital deployment flexibility.

 

 “The acquisition of CSRA represents a significant strategic step in expanding the capabilities and customer base of GDIT,” said Phebe Novakovic, chairman and chief executive officer of General Dynamics. “CSRA’s management team has created an outstanding provider of innovative, next-generation IT solutions with industry-leading margins. We see substantial opportunities to provide cost-effective IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies. The combination enables GDIT to grow revenue and profits at an accelerated rate. It will allow us to deliver even more innovative, leading-edge solutions to our customers.”