By Tony Hallett, 13 December 2002 14:45
NEWS Computer Sciences Coporation (CSC) is to pay almost a billion dollars in cash and shares to buy DynCorp, a move that will make it one of the top 10 contractors to the US government. The deal, approved by both companies' boards but not yet their shareholders, will entail CSC assuming DynCorp debt of $273m as part of the $950m price tag and inheriting an extra 23,000 staff around the world. CSC estimates the deal will add $6bn to its 2003 revenues column. DynCorp focuses on large defence, security and civil contracts, specialising in systems and network integration, global defence logistics and homeland security services. In a statement, CSC chairman and CEO Van B Honeycutt said: "With this transaction, we are seizing an opportunity to significantly strengthen our leadership position in the US federal marketplace, augment our capabilities to support the requirements of the new Homeland Security Department and respond to the federal government's initiative to increase its reliance on service providers."
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