CSC To Sell DynCorp Unit

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.