WASHINGTON ― In response to an increased bid from General Dynamics to acquire CSRA, CACI announced March 28 it has withdrawn its offer to acquire acquire all outstanding shares of CSRA. The announcement clears the way for General Dynamics’ acquisition of CSRA to go forward.

Although initial reports indicated General Dynamics would stick with its original bid, a company statement released March 20 announced an amended merger agreement. The new proposal would have General Dynamics acquire all outstanding shares of CSRA for $41.25 per share in cash, an increase from the original $40.75 per share offer.

With the higher offer, the transaction is now valued at $9.7 billion, including General Dynamics’ assumption of $2.8 billion in CSRA debt.

In making the decision to stick with General Dynamics, “CSRA’s Board of Directors took into account various factors, including among others, the value, certainty of value, certainty of closing, and speed to closing of the General Dynamics offer, as amended, as compared to the CACI proposal” the statement says.

From CACI’s perspective, CSRA made the wrong choice. “CACI continues to believe that CACI and CSRA would be the superior strategic and financial business combination,” CACI Chief Executive Officer Kenneth Asbury said. ““The combination would have created an industry leading pure play in the federal IT solutions and services market.”

CSRA has been a player in the defense tech community. In June 2017, the company was awarded a $143 million contract from the U.S. Marine Corps to provide advanced IT services. In November 2016, CSRA won a task order to develop a cyber defense strategy for various offices within the Department of Defense.

Daniel Cebul is an editorial fellow and general assignments writer for Defense News, C4ISRNET, Fifth Domain and Federal Times.

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