FALLS CHURCH, Va. (AP) - The defense contractor General Dynamics is buying CSRA for almost $7 billion with the latest Senate proposals pushing defense spending aggressively higher.
Shares of CSRA Inc. soared more than 30 percent before the opening bell Monday.
General Dynamics will pay $40.75 per CSRA share. That's a 32 percent premium to its Friday closing price of $30.82. The deal includes an additional $2.8 billion in debt.
Chairman and CEO Phebe Novakovic said in a printed statement that the acquisition will help General Dynamics provide cost-effective internet technology solutions to the Department of Defense, intelligence community and federal civilian agencies.
CSRA and General Dynamics Corp. are based in Falls Church, Virginia. Both have offices in Huntsville.
The transaction is expected to close in the first half of the year.