CACI withdraws CSRA acquisition offer
CACI International Inc of Arlington, VA announced on March 28 that it has withdrawn its previously announced offer to acquire all outstanding shares of Falls Church, VA-based CSRA Inc. for $44.00 per share in cash and stock. CACI delivered a letter withdrawing its offer to CSRA’s board chair and chief executive officer.
With regard to the decision to withdraw its offer, CACI CEO Kenneth Asbury commented, “CACI continues to believe that CACI and CSRA would be the superior strategic and financial business combination. The potential for such a high value and transformational transaction certainly warranted our pursuit of this unique opportunity. We will continue our aggressive pursuit of strategic opportunities, judiciously and without engaging in auctions at uneconomic levels.”
“The combination would have created an industry leading pure play in the federal IT solutions and services market. We also believe the combined entity would have provided shareholders with the potential for significant stock appreciation. Our confidence in the benefits of this combination was informed by our years of M&A experience and the same rigorous evaluation process that we have used with our many successful transactions. Our proven M&A success factors include our distinctive performance, financing capabilities and strong cash flow, established due diligence protocols and our track record of integration success. These factors, combined with our view of the projected growth of the federal budget for our sector, drove our enthusiasm and confidence in our offer.”
Asbury concluded, “As demonstrated by our performance and increased guidance for Fiscal Year 2018, CACI is in a strong position for future growth. We will continue to evaluate new opportunities to grow our business in ways consistent with our disciplined approach to M&A and the capture of major programs. We are very confident in our time-tested business strategy to bring our unique, innovative, value-add capabilities to our customers and marketplace, and our commitment to increase shareholder value.”