Veritas to Acquire DynCorp
Private equity firm Veritas said it agreed to acquire DynCorp International, which provides aviation maintenance, personal security and training for law enforcement agencies and the U.S. government, for $850 million.
Computer Sciences Corp. of El Segundo said late Sunday that the sale of its DynCorp subsidiary would allow it to focus on providing information technology, engineering and professional services to the U.S. government. The sale also would give it additional funds to improve its strategic and financial flexibility.
For the record:
12:00 a.m. Dec. 15, 2004 For The Record
Los Angeles Times Wednesday December 15, 2004 Home Edition Main News Part A Page 2 National Desk 1 inches; 56 words Type of Material: Correction
Veritas deal -- A headline in Tuesday’s Business section said private equity firm Veritas Capital agreed to acquire DynCorp. The headline and the article should have made clear that Veritas agreed to acquire DynCorp International, a subsidiary of Computer Sciences Corp. DynCorp International represented only a part of DynCorp, which Computer Sciences Corp. acquired last year.
Terms of the deal include $775 million in cash payable at closing, plus $75 million of senior preferred stock, CSC said. The company expects to use proceeds of the sale to reduce debt, repurchase stock, fund acquisitions and for other corporate purposes.
Excluding a $400-million gain from the deal, Computer Sciences reiterated that it expected its fiscal 2005 earnings to be $3.10 to $3.20 a share.
CSC shares rose $1.48 to $57.25 on the New York Stock Exchange.
DynCorp maintains large aircraft fleets, overhauls weapons systems and supports equipment for clients such as the Department of Defense and the United Nations. It also provides training for international law enforcement agencies and personal security services.
The company employs about 14,000 people worldwide.
