General Dynamics will buy CSRA as defense spending rises

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Defense contractor General Dynamics is buying tech giant CSRA for almost $7 billion.

CSRA owns the Integrated Technology Center in the National Cyber Research Park and the Customer Engagement Center on Benton Road, both in Bossier City.

The Trump administration’s increase in defense spending is being cited as a major incentive for the move.

President Donald Trump signed a budget bill last week that provides $700 billion for the Pentagon. This is a $94 billion increase and the the biggest year-over-year increase since 2003.

Shares of CSRA Inc. increased almost 32 percent Monday morning.

General Dynamics said that it will pay $40.75 per CSRA share. That’s a 32 percent premium to its Friday closing price of $30.82. The deal includes an additional $2.8 billion in debt service.

Chairman and CEO Phebe Novakovic said in a statement to the Associated Press that the acquisition will help General Dynamics provide cost-effective internet technology solutions to the Department of Defense, intelligence community, and federal civilian agencies.

CSRA and General Dynamics Corp. are based in Falls Church, Virginia.