General Dynamics Corp. raised its all-cash offer to acquire IT services provider CSRA Inc. to $41.25 per share from $40.75 to counter a recent bid from rival CACI International Inc.
The U.S. defense contractor said its proposal is now valued at $9.7 billion, up from $9.6 billion previously, including the assumption of $2.8 billion in CSRA debt. CACI International on March 18 offered to acquire CSRA for $44.00 per share in cash and stock.
CSRA's board recommended General Dynamics' improved offer to its shareholders.
"In reaching that determination, CSRA's board of directors took into account various factors, including among others, the value, certainty of value, certainty of closing and speed to closing of the General Dynamics offer, as amended, as compared to the CACI proposal," General Dynamics said. The company noted that it has secured all required regulatory approvals and the funding to complete the CSRA acquisition in early April.