CSRA Gears Up for Secondary Offering
The CSRA secondary offering of almost 25 million shares is valued at more than $696 million.
CSRA Inc. (NYSE: CSRA) filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering. The offering is for a total of roughly 24.8 million shares, which at Wednesday’s close ($28.08) value the entire offering at $696.5 million.
The company will not receive any proceeds from the offering, and at the same time this offering does not have any underwriters.
In late November, CSRA became an independent company through consummation of the spin-off by Computer Sciences Corp. (NYSE: CSC) of its U.S. public sector business. Prior to Computer Sciences’ distribution of the shares of CSRA common stock to its stockholders, the company undertook a series of internal transactions, following which CSRA held the businesses constituting CSC’s North American Public Sector segment.
CSRA is one of the nation’s largest independent providers of IT services to the U.S. federal government. With over five decades of government partnership, the company believes it makes the best practices succeed in government contexts.
The company employs roughly 19,000 employees. CSRA manages its business with a matrix model composed of industry verticals that are customer-facing and have deep knowledge of customers’ missions, and a horizontal delivery organization with depth of technical expertise that they deliver across industries. CSRA operates in two industry verticals, which are also its reportable segments: Defense and Intelligence, and Civil.
Shares of CSRA were trading up 1.4% at $28.48 Thursday, with a consensus analyst price target of $37.00 and a post-spin-off range of $26.72 to $33.44.
Computer Sciences shares were trading at $30.63, with a consensus price target of $32.75 and a 52-week range of $24.77 to $31.96.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
