Monthly Meeting - Growth and Sale of CSRA (L. Prior, D. Keffer, A. Sheipe with B. Landew)

Larry Prior, former President and CEO

Dave Keffer, former EVP and CFO

Adam Sheipe, former VP and Head of Corporate Development

Moderator:  Barry Landew, CEO, Wolf Den Associates

 

 

Combination creates the premier provider of high-tech IT solutions to Government Technology Services marketWith 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 requirementsExpected 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.”

Larry Prior, chief executive officer and president of CSRA, said, “Our combination with General Dynamics represents an excellent outcome for CSRA’s stockholders, employees and customers. It builds on strong shared values, culture and a passion for serving our customers’ missions. We believe that this combination creates a clear, differentiated leader in the Federal IT sector, with a full spectrum of enterprise IT capabilities, including unique depth in Next-Gen offerings in conjunction with our commercial IT alliance partners.”