by clicking on the page. A slider will appear, allowing you to adjust your zoom level. Return to the original size by clicking on the page again.
the page around when zoomed in by dragging it.
the zoom using the slider on the top right.
by clicking on the zoomed-in page.
by entering text in the search field and click on "In This Issue" or "All Issues" to search the current issue or the archive of back issues respectively.
by clicking on thumbnails to select pages, and then press the print button.
this publication and page.
displays a table of sections with thumbnails and descriptions.
displays thumbnails of every page in the issue. Click on a page to jump.
allows you to browse through every available issue.
FCW : September 30, 2015
September 30, 2015 FCW.COM 17 “This will drive significant value for clients, shareholders and employees.” MIKE LAWRIE, CSC Deleveraging will likely be a priority because CS Government Services will have $2.7 billion in debt when it completes the twin transactions of splitting from CSC and acquiring SRA. The debt includes a $10.50 per share special dividend that will be paid to each CSC shareholder as part of the split. SRA’s shareholders — which are primarily Providence Equity Partners, SRA founder Ernst Volgenau and SRA management — will receive $390 million in cash. The $2.7 billion also includes refinancing SRA’s $1 billion in debt. Once the deal is completed, CS Government Services shareholders will own 84.7 percent of the company and SRA shareholders will own 15.3 percent. ‘Playing the role of consolidator’ The acquisition of SRA should also dispel the rumors that CSC was splitting off its government business to make it an easier takeover target for other buyers. “W ith this move with SRA, we are really playing the role of consolidator,” Lawrie said. “You can’t make a stronger statement than that.... We are not running the commercial business and the [North American Public Sector] business with the idea of positioning them for sale.” SRA was attractive because it “was a clean asset, well managed, well disciplined with good cost controls, and we had very little overlap,” Lawrie said. CSC has gone through its cost- control phase and is now ready to pivot toward growth. To acquire another company that needed to go through its own cost-control phase would likely have slowed that momentum, he added. “I think this industry is going to consolidate, and scale is increasingly important for next-generation solutions and strategies,” Lawrie said. “We wanted to be an early mover in creating a platform solely dedicated to IT services.” The CSC split also played a role because the acquisition of SRA likely would not have happened if CSC had remained in its current structure with two-thirds of the business being commercial, he said. With the acquisition of SRA, CS Government Services’ business mix will be about 52 percent defense and intelligence, 30 percent health and civilian, and 13 percent from the Department of Homeland Security. Lawrie said the acquisition will combine the technical capabilities and solutions that CSC has developed in recent years — particularly around the cloud and managed services — with SRA’s focus on the customer and the mission. “This will drive significant value for clients, shareholders and employees,” he said. A great example is CSC’s recent win of a $109 million Federal Aviation Administration cloud contract. “We partnered with Amazon and Microsoft and developed a world-class hybrid cloud solution, and we see more opportunities like that,” he said. Specifically, the combined 0930fcw_012-028.indd 17 9/9/15 10:24 AM
September 15, 2015