Computer Associates (CA) has made an offer to acquire outsourcing giant Computer Sciences Corp (CSC) for $US9 billion in a deal that would create a 50,000-person company worth $US11 billion, the company announced.
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.
CSC's management, Board of Directors and professional advisors will evaluate the offer, and the Board's response will be issued when that evaluation is complete.
In the interim, shareholders have been cautioned to refrain from taking any premature action concerning the proposal until they have received CSC's response.
Van Honeycutt, CSC's chairman, president and chief executive officer, stated that while there have been two brief meetings at CA's request, any suggestion that there have been negotiations or agreements between the two companies is absolutely false.
CSC had $US6.3 billion in revenue for the 12 months ended December 26, 1997. The company has 44,000 employees in nearly 600 offices worldwide and provides clients with a wide range of professional services, including management consulting, information systems consulting and integration, and operations support.
The proposed deal follows a trend in the computing industry to move towards offering complete computing services, as witnessed by Compaq's recent bid for Digital.