CSC to buy outsourcer Covansys for US$1.3 billion
- 26 April, 2007 13:27
Computer Sciences Corp. (CSC) will spend US$1.3 billion in cash to acquire outsourcing company Covansys and double its staff in India, the company said Wednesday.
CSC agreed to acquire Covansys for US$34 per share. The deal is expected to close during CSC's second fiscal quarter of 2008. The company said the impact on its earnings will be neutral for the following 12 months.
The move approximately doubles CSC's work force in India to about 14,000. Seventy percent, or 6,400, of Farmington Hills, Michigan-based Covansys' 9,000 employees are in India.
CSC has announced a series of government contracts so far this year, including US$1.2 billion in U.S. government deals, and separate contracts valued at US$379 million and US$280 million, respectively, with U.K. government entities.