General Dynamics completes CSRA purchase

General Dynamics announced today it has completed its multibillion-dollar acquisition of CSRA.

The $9.7 billion transaction will make CSRA part of General Dynamics' Information Technology business unit. "This combination creates a premier provider of high-tech IT solutions to the government IT market," an April 3 GD statement reads.

"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," GD chief executive Phebe Novakovic said in the 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."

The finalization of the deal comes weeks after CSRA briefly flirted with the prospect of being acquired by CACI International, which offered more money per share -- $44 -- than General Dynamics' original $40.75-per-share bid.

General Dynamics subsequently countered by increasing the price it would pay for CSRA's stock to $41.25 per share in cash, upping the value of the deal to $9.7 billion, including the assumption of $2.8 billion in CSRA debt. On March 28, CACI withdrew its purchase offer.