Computer Sciences Corp. Friday said it agreed to acquire DynCorp, a closely held provider of technology and outsourcing systems to the federal government, for about $677 million.
The purchase will enable Computer Sciences to expand its government contract work amid the U.S. crackdown on terrorism.
El Segundo, Calif.-based Computer Sciences said it expects to derive about $6 billion in annual revenue from the federal government following the acquisition.
Computer Sciences had revenue of $11.4 billion for the fiscal year ended in March.
DynCorp, based in Reston, Va., provides consulting, information systems, logistics, engineering and information-systems integration mainly to U.S. government agencies. It had revenue of $2.3 billion for the 12 months ended Sept. 26.
DynCorp will become part of Computer Sciences' Federal Sector unit, which employs about 15,000 people and is based in Falls Church, Va.
Under the agreement, expected to close early next year, Computer Sciences will pay $15 in cash and stock valued at $43 for each share of DynCorp. It will also assume $273 million in debt.
In midday trading Friday, shares of Computer Sciences fell $1.74, or 5 percent, to $32.93 on the New York Stock Exchange.
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