WASHINGTON – General Dynamics has completed a roughly $9.7 billion acquisition of IT services giant CSRA.

CSRA, the 39th largest defense contractor on the annual Defense News Top 100 list, will now become part of General Dynamics Information Technology. GD came in sixth on the Defense News Top 100, and is now positioned as the prime competitor to Leidos in the government IT services area.

“The combined CSRA and GDIT offers innovative, competitive and compelling solutions to our customers, and provides attractive free cash flow coupled with good incremental return on capital for investors,” Phebe Novakovic, chairman and chief executive officer of General Dynamics, said in a statement.

“GDIT is positioned to deliver cost-effective, next-generation IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies as they modernize their information systems.”

GD announced its intention to acquire CSRA on Feb. 12, but the deal hit a last-minute hiccup when competitor CACI came in and attempted to hijack the acquisition. That bid ultimately failed, although it did force General Dynamics to amend its offer to acquire all outstanding shares of CSRA for $41.25 per share in cash, an increase from the original $40.75 per share offer.

About Aaron Mehta

Aaron Mehta was deputy editor and senior Pentagon correspondent for Defense News, covering policy, strategy and acquisition at the highest levels of the Defense Department and its international partners.

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