Deals

Tank-Maker General Dynamics Renews IT Bet With $6.8 Billion Deal

Contractor bulks up computer services as defense outlays rise
CSRA shareholders get 32% premium over closing price last week

Bloomberg Government’s Robert Levinson thinks General Dynamics’ deal to buy CSRA will be approved.(Source: Bloomberg)

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By Phil Serafino and Thomas Black

February 12, 2018 at 11:56 AM UTC

Updated on

February 13, 2018 at 12:14 AM UTC

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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. CSRA holders will receive $40.75 a share in cash, General Dynamics said in a statement Monday, a 32 percent premium over the closing price at the end of last week.