Computer Associates Makes Unsolicited Bid for Computer Sciences Corp.

Strategic Insights -

Computer Associates International, a software industry leader with 10,000 employees, has made a bold move by submitting an unsolicited bid to acquire Computer Sciences Corp., a leading IT services provider with 44,000 employees and $6.3 billion in revenue for the year ended December 26. This potential acquisition would catapult CA into the lucrative services business, allowing the firm to offer bundled software and services to its customers, thereby increasing its competitiveness in the market. CA's Chairman Charles Wang sees the deal as an opportunity to transform the company into a "soup-to-nuts solutions provider."

Key Takeaways:

  • CA has made an unsolicited bid to acquire CSC, a leading IT services provider with 44,000 employees and $6.3 billion in revenue.
  • The acquisition would catapult CA into the lucrative services business, enabling the firm to offer bundled software and services to its customers.
  • CA's Chairman Charles Wang believes the deal would transform the company into a "soup-to-nuts solutions provider."
  • CSC has issued a cautious response, stating that its management, board of directors, and professional advisors will evaluate the offer.
  • CA's Chairman Wang acknowledged that the company currently only sells software, implying that the acquisition of CSC would significantly expand CA's offerings.

Statistics:

  • CA has 10,000 employees.
  • CSC has 44,000 employees.
  • CSC generated $6.3 billion in revenue for the year ended December 26.
  • The acquisition would position CA as a major competitor to IBM, EDS, and DEC (now owned by Compaq).

Sources:

  • "Computer Associates Makes Move to Enter Services Business," New York Times
  • "CA Makes Bid for CSC," [No specific publication mentioned in the original text]