Following split and merger, CSRA kicks off as a new company

By Marjorie Censer / November 30, 2015 at 10:58 AM

Computer Sciences Corp. on Monday formally split off its U.S. public-sector business and merged it with SRA International to create a new contractor known as CSRA.

The new business becomes the largest government services contractor, with about $5.5 billion in annual sales and 19,000 employees. Larry Prior has been named its chief executive.

Under the separation agreements, stockholders of CSC common stock as of Nov. 18 received a distribution of one CSRA common share for every one share of CSC common stock they held, the company said Monday.

Both companies paid special cash dividends totaling $10.50 per share -- $2.25 paid by CSC and $8.25 by CSRA.

Under the merger agreement with SRA, former SRA shareholders received $390 million in cash and about 25 million CSRA shares -- or about 15 percent of the outstanding common shares of the contractor.

Among the members of the CSRA board of directors are Prior; Mike Lawrie, CSC's chief executive; Keith Alexander, the former head of the National Security Agency; Sanju Bansul, the co-founder of MicroStrategy; Michèle Flournoy, CEO of the Center for a New American Security; and Sean O'Keefe, the former chief executive of EADS North America.

David Keffer has been named CSRA's chief financial officer.

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