CSC to acquire Nichols Research
- By Margret Johnston
- Sep 19, 1999
Computer Sciences Corp. today announced plans to buy Nichols Research Corp., a defense and intelligence research specialist and systems integrator, in a stock-for-stock deal valued at $391 million.
Nichols provides systems engineering, information technology and technical assistance for aviation, missiles and space defense systems used by military and intelligence organizations.
About 80 percent of Nichols' $455 million in annual revenue comes from federal contracts, according to a CSC release.
In addition to bolstering CSC's defense and intelligence capabilities, the acquisition complements CSC's civilian agency business and its health care and consulting business units, said Van Honeycutt, CSC's chairman, president and chief executive officer.
One of Nichols' largest contracts is with the Huntsville, Ala.-based Redstone Arsenal, which is home to several major U.S. Army organizations.
CSC expects the Redstone Arsenal to be one of the first Army organizations to outsource its IT infrastructure, and the purchase of Nichols will put CSC in a strong position to capture the work, Honeycutt said.
The transaction has been unanimously approved by the boards of directors of both companies, but it still must be approved by Nichols shareholders and government regulators.