Delhi MCD Election Results 2017

Source: media reports

CSC to buy Covansys for $1.3 bn, strengthens India’s operations

CSC to buy Covansys for $1.3 bn, strengthens India’s operations
Comment E-mail Print Share
First Published: Thu, Apr 26 2007. 05 51 PM IST
Updated: Thu, Apr 26 2007. 05 51 PM IST
PTI
New Delhi: US based IT company Computer Sciences Corp. (CSC) will buy rival Covansys for $1.3 billion (Rs5,271 crore) in an all cash deal and double its staff in India to 14,000.
The acquisition increases CSC’s India delivery capabilities and accelerates development of strategic offshore offerings, a joint statement of the two companies said.
“CSC and Covansys corporation have entered into an agreement under which CSC will acquire Covansys for $34 per share in an all-cash transaction. The transaction is valued at approximately $1.3 billion and earnings per share is expected to be neutral to CSC during the first 12 months”, CSC said.
Both the companies’ operations in India have been ranked among the top 10 places to work for IT professionals in India. The acquisition approximately doubles CSC’s work force in India to about 14,000. The Michigan-based Covansys’ has 6,400 employees in India.
“This acquisition furthers CSC’s strategic goals of increasing shareholder value and growing our business both organically and by acquisition,” said CSC chairman and chief executive officer 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.”
“We believe this is an outstanding transaction for our shareholders, clients and employees,” said Raj Vattikuti, president and CEO of Covansys.
Comment E-mail Print Share
First Published: Thu, Apr 26 2007. 05 51 PM IST
More Topics: Corporate News | World Business |