CSC acquires Covansys for USD 1.3 billion

Bangalore, Apr 26: Computer Sciences Corporation (CSC) and Covansys Corporation today announced that they have entered into an agreement under which CSC will acquire Covansys for USD 34.00 per share in an all-cash deal amounting to nearly USD 1.3 billion.

The agreement has been approved by the Board of Directors of CSC a Company release said here today. The transaction is expected to be completed during the second quarter of CSC's fiscal year 2008.

"This acquisition furthers CSC's strategic goals of increasing shareholder value and growing our business both organically and by acquisition," said CSC Chairman and Chief Executive Officer Van B.

Honeycutt. "With this action, we are significantly strengthening our capabilities and presence in India as well as creating an additional market channel for our industry, consulting and outsourcing solutions" he added.

Raj Vattikuti, President and CEO of Covansys said "CSC is at the forefront of the global IT services industry, making it an ideal partner for Covansys. This combination meets our goal of delivering significant value to our shareholders. It also creates exciting opportunities for Covansys employees while increasing our capacity to penetrate new industry verticals and deliver superior service to our existing clients. I look forward to working with the new combined team." CSC said the acquisition would significantly accelerate its India offshore business plan with the addition of a U S and international direct sales force.

Both Covansys and CSC's operations in India have been ranked among the top 10 places to work for IT professionals in India. The acquisition nearly doubles the size of CSC's work force in India to approximately 14,000.

UNI