Flurry Of New Deals Could Make CSC A More Attractive Takeover Target

The California-based contractor on Wednesday said it received from the Internal Revenue Service a $36 million task order to help the federal tax agency upgrade its business systems. The order falls under an existing agreement between CSC and the IRS.

On Tuesday, CSC said it is in sole talks to provide up to $1.9 billion in technology services over five years to British aerospace giant BAE Systems. The contract, still in final negotiations, would see CSC operate critical infrastructure for BAE at 117 locations in the U.K. and North America. The contract would extend an existing agreement between CSC and BAE that expires next year.

Also on Tuesday, CSC finalized a seven-year extension to its services contract with DuPont and announced the renewal of an agreement with missile systems developer MBDA. The DuPont contract extension is worth $1.6 billion to $2 billion, CSC says. The MBDA deal is worth $100 million.

The new contracts will surely raise eyebrows at defense contractor Lockheed Martin, which recently backed off discussions to acquire CSC. The vendor's renewal of deals with key customers like BAE, however, could spark renewed interest at Lockheed and other defense contractors looking for a larger presence in the IT services market. General Dynamics is the latest to go that route, announcing last week its intention to pay $2.2 billion to acquire Anteon International.