SRA International Inc., the provider of computer services to the U.S. government, agreed to be bought by Providence Equity Partners LLC for $1.88 billion in cash.
Providence Equity will pay $31.25 a share, Fairfax, Virginia-based SRA said today in a regulatory filing. That’s a 10 percent premium to SRA’s closing price yesterday and more than 50 percent higher than at the start of the year, according to the statement.
SRA, which helps government agencies in areas such as national security, disaster response planning and information systems, started looking for a possible buyer in October. Providence Equity last year hired Renato DiPentima, the former chief executive officer of SRA, as a senior adviser.
“The government information services market is a highly attractive area of investment for Providence,” Julie Richardson, a managing director at Rhode Island-based Providence, said in the statement.
SRA rose $2.77, or 9.8 percent, to $31.13 at 10:19 a.m. in New York Stock Exchange composite trading. The stock has gained 52 percent this year.
Founded in 1978, SRA employs 7,300 people. The company will continue to be led by its existing management team under the agreement. The companies said they expect to complete the deal in the fiscal quarter beginning July 1. SRA has 30 days to solicit other acquisition proposals, the companies said.
Providence Equity’s largest buyouts include the $15.3 billion takeover in 2006 of Danish telephone company TDC A/S, in which it teamed up with Apax Partners Worldwide LLP, Blackstone Group LP, KKR & Co. and Permira Advisers Ltd. It also participated in the acquisition of Univision Communications Inc. in 2007 for $12.3 billion.
DiPentima counsels Providence Equity on the government technology industry and serves on the board of Falls Church, Virginia-based Altegrity Inc., a Providence-owned company that works with governments.