By Lisa Kerner
Charlotte, N.C., April 26 - Computer Sciences Corp. entered into an agreement to acquire Covansys Corp. for $34 per share in an all-cash transaction valued at about $1.3 billion.
The boards of directors for both companies have approved the deal, which is expected to close in Computer Sciences' fiscal second quarter ending in September.
"This acquisition furthers Computer Sciences' strategic goals of increasing shareholder value and growing our business both organically and by acquisition," chairman and chief executive officer Van B. Honeycutt said in a company news release.
"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."
Gibson, Dunn & Crutcher LLP is acting as legal adviser to Computer Sciences, while UBS Securities LLC is acting as financial adviser and has affirmed the fairness of the transaction to the company's board of directors.
Butzel Long is acting as legal adviser to Covansys, with Credit Suisse acting as financial adviser. Katten Muchin Rosenman LLP is acting as the special committee's legal adviser.
Covansys, based in Farmington Hills, Mich., is an information technology services company.
Computer Sciences, an information technology services company, is located in El Segundo, Calif.
| Acquirer: | Computer Sciences Corp.
|
| Target: | Covansys Corp.
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| Transaction total | $1.3 billion
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| Price per share: | $34
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| Announcement date: | April 26
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| Expected closing: | Second quarter of Computer Sciences' fiscal year 2008
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| Stock price for target: | Nasdaq: CVNS; $26.80 on April 25
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