According to plan, CSRA Inc. [CSRA] on Monday completed its separation from CSC [CSC] and began trading on the New York Stock Exchange as an independent public company.
CSRA also on Monday completed its acquisition of SRA International and announced that its board has authorized a potential $400 million three-year share repurchase program. CSRA also said it will be paying a 10 cents per share quarterly dividend.
CSRA is a $5.5 billion federal information technology solutions and services provider made up of CSC’s former North American Public Sector (NPS) division and SRA.
“By combining the former CSC and SRA businesses into CSRA, we have created the leading provider of next generation IT solutions that will really make a difference in how our government serves our country and our citizens,” Lawrence Prior, CSRA’s CEO, said in a statement.
In addition to Prior, who led CSC’s NPS business, some of the other key members of CSRA’s executive team include David Keffer, who is chief financial officer, a position he held at SRA, Sally Sullivan, executive vice president of Business Development, a position she held at CSC NPS, George Batsakis, EVP of the Defense Group who joins the company after serving as SRA’s chief of its National Security Group, Charles Koontz, Civil Group EVP, who was VP and general manager of CSC NPS Health Agencies, Catherine Kuenzel, EVP of the DHS Group, who was VP and general manager of the NPS Homeland Security & Civil Agencies Industry, Ken Deutsch, EVP of the Defense Mission Group, who was VP and general manager of the NPS Defense and Intelligence Group, Paul Nedsbala, EVP of the Health Group, who was EVP of SRA’s Health and Civil Group, Leigh Palmer, EVP of the Intelligence Group, who was VP for National Information Technology Mission Solutions within BAE Systems’ Intelligence and Security Sector, and John Dancy, chief information officer, who as director of strategic initiatives in the NPS Infrastructure Services Group.
CSRA also announced its board members, which include Chairman Mike Lawrie, who is also president and CEO of CSC, Keith Alexander, Sanju Bansul, Michele Flournoy, Mark Frantz, Nancy Killefer, Sean O’Keefe, Prior, Michael Ventling, and Billie Williamson.
CSRA paid $390 million in cash and 25 million of its shares for SRA, which previously was owned by a shareholder group led by Providence Equity Partners and SRA’s founder Ernst Volgenau, as well as members of its management team.
CSC’s financial advisers for the divestiture of CSRA were RBC Capital Markets, Guggenheim Securities, and Goldman, Sachs & Co. CSC’s and CSRA’s financial advisers on the SRA acquisition were Guggenheim and RBC.
CSC in May announced its plan to split into two separate publicly traded companies.