CSC completes Covansys acquisition
03 July 2007 | 1698 views | 0
Source: Computer Sciences Corporation
Computer Sciences Corporation (NYSE:CSC) today announced that the company has completed its acquisition of Covansys for $34.00 per share in an all-cash transaction.
The announcement follows approval of the acquisition by the holders of a majority of the outstanding Covansys shares at a shareholder meeting June 27.
Covansys will operate as a separate business unit of CSC and will now be known as Covansys, a CSC Company. Raj Vattikuti will continue to lead this new business unit and will report directly to CSC President and Chief Executive Officer Michael W. Laphen.
"With this acquisition, we have significantly advanced our global growth strategy, called Project Accelerate, by strengthening our capabilities and presence in India as well as creating an additional market channel for our industry, consulting and outsourcing solutions," said Michael Laphen. "This action reinforces our commitment to build a more robust offshore platform and will enable us to offer a broad range of capabilities to clients directly from India or through our existing businesses."
"We are pleased to conclude this transaction and we look forward to joining CSC," said Raj Vattikuti, President and Chief Executive Officer of Covansys. "CSC is at the forefront of the global IT services industry, and this transaction will provide significant opportunities to penetrate new industry verticals and deliver superior services to our existing clients."
Under Project Accelerate, major growth initiatives being undertaken by CSC include maximizing the potential represented in CSC's Indian offshore capabilities, developing a robust presence in the emerging midsize outsourcing marketplace, aligning vertical industry activities with markets representing the greatest growth potential, enhancing global integration and world sourcing capabilities, and strengthening the company's position in public sector business.
The acquisition of Covansys accelerates the company's initiatives with the addition of 8,200 employees, including about 6,000 in India, nearly doubling the size of CSC's workforce in India to approximately 14,000. Both Covansys' and CSC's operations in India have been ranked among the top 10 places to work for IT professionals in India.