CA wants to buy Computer Sciences for $US9 billion

The IT industry's mergers and acqusitions fever has hit another high with Computer Associates' offer to acquire outsourcing giant Computer Sciences (CSC) for US$9 billion in a deal that would create a 50,000-person company worth $11 billion. Under the terms of the bid, CSC shareholders would receive $108 in cash for each share of common stock, according to CA. The company says it has obtained the financing required to complete the acquisition of CSC. In addition, CA says it plans to retain all of CSC's employees.

Computer Associates (CA) has made an offer to acquire outsourcing giant Computer Sciences Corp. (CSC) for US$9 billion in a deal that would create a 50,000-person company worth $11 billion.

Under the terms of the bid, CSC shareholders would receive $108 in cash for each share of common stock, according to CA. The company says it has obtained the financing required to complete the acquisition of CSC. In addition, CA says it plans to retain all of CSC's employees.

Together, software vendor CA and computer-services company CSC would create a company able to offer a wide range of platform-independent products and services, CA said in a statement. Neither company could be reached for immediate comment.

Owning CSC, a larger company than CA, would give CA access to CSC's broad client base around the world. The proposed deal follows a trend in the computing industry to move towards offering complete computing services, as witnessed by Compaq Computer Corp.'s recent bid for Digital Equipment Corp.

CA's offer to CSC is outlined in a letter to CSC Chairman and CEO Van B. Honeycutt which is available on the Internet at http://www.cai.com/csc/.

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