CSC To Sell DynCorp UnitCSC To Sell DynCorp Unit
The deal comes less than two years after CSC acquired the supplier of specialized military services.
December 13, 2004
Less than two years after revealing its acquisition, Computer Sciences Corp. said Monday that it will sell substantial parts of its DynCorp unit to private-equity firm Veritas Capital.
Under the deal, disclosed Monday, Veritas will pay CSC $850 million in cash and stock. CSC acquired DynCorp in early 2003 for $950 million. Veritas Capital operates a number of companies that provide specialized services to the military. CSC says it expects the transaction to close in the first quarter of 2005. DynCorp offers a range of IT, security, and paramilitary services to U.S. and foreign governments. The unit provides armed security personnel in Afghanistan and Iraq under contracts with the U.S. government. A CSC spokesman says the company has decided that such activities are "non-core" to its IT services business. CSC will, however, maintain the bulk of assets and contracts from DynCorp's technology and engineering arm, DynCorp Technical Services. CSC plans to fold those operations into a new division focused on providing services to the federal government. Revenue for the parts of DynCorp that CSC is selling totaled $1.6 billion for the 12 months ended Oct. 1, CSC says. CSC posted total revenue of $14.8 billion for fiscal 2004.
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