Computer Sciences Corp. will sell its DynCorp International, DynMarine units and certain DynCorp Technical Services contracts to private equity firm Veritas Capital for $850 million.
Terms of the deal include $775 million in cash payable at closing, plus $75 million of senior preferred stock. El Segundo-based Computer Sciences Corp. expects to use proceeds of the sale to reduce debt, repurchase stock, fund acquisitions and for other corporate purposes. The transaction is expected to close in the first quarter of 2005.
Computer Sciences Corp. will maintain the bulk of assets and contracts from DynCorp’s technology and engineering arm, DynCorp Technical Services. Those operations will be folded into a new division focused on providing services to the federal government.
Computer Sciences Corp. acquired DynCorp International, which provides aviation maintenance, personal security and training for law enforcement agencies and the U.S. government, in early 2003 for $950 million.
Veritas Capital is headquartered in New York City.