CSC to acquire Covansys for USD 1.3 billion

Bangalore, Apr 26 (UNI) Computer Sciences Corporation (CSC) and Covansys Corporation today 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, approved by the Board of Directors of CSC, was expected to be completed during the second quarter of CSC's fiscal year 2008, a company release said here today.

"This acquisition would further increase shareholder value of CSC and grow our business", said CSC Chairman and CEO 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.

President and CEO of Covansys Raj Vattikuti said, "CSC is at the forefront of the global IT services industry, making it an ideal partner for Covansys. This combination 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 work 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 had been ranked among the top ten places to work for IT professionals in India. The acquisition would nearly double the size of CSC's work force in India to approximately 14,000.

UNI