Booz Allen Hamilton Inc.

General Dynamics Embarks On $9.6 Billion Deal To Capture New Defense Spending

WASHINGTON - Falls Church, Virginia-based government contracting giant General Dynamics announced Monday that it is buying CSRA, a government IT services conglomerate that formed in 2015 amid a wave of industry consolidation.

The $9.6 billion deal includes $6.8 billion cash and $2.8 billion debt. General Dynamics will buy all shares of CSRA for $40.75 under the terms of the deal, a 32 percent premium from Friday's closing price. The transaction is scheduled to close in the first half of 2018.

General Dynamics Electric Boat, the submarine builder in Groton, is a subsidiary of General Dynamics.

The deal turns General Dynamics into a $9.9 billion-a-year behemoth in...