CSRA, GD, CACI TRIANGLE UNDERSCORES NEED TO CONSISTENLY EVOLVE
General Dynamics is likely now to be successful in its bid to acquire CSRA, a merger Bloomberg Government estimates will create the largest provider of IT services to the federal government. If true, the combined company would supplant Leidos, the current holder of the number 1 position in this segment. The GD-CSRA portion of the story makes sense, at least from the GD perspective. Its in-house GDIT and related business failed to make expected numbers, the stock took a hit, and the company went into acquisition mode to beef up its commercial IT-related capabilities. The outside lane bid from CACI, however, shows that, despite an estimated down-turn in M&A activity among government contractors, companies with strong portfolios and existing business remain potential takeover targets as contractors look for ways to maintain a competitive edge and maximize both the offerings they can provide and the number of agencies with which they do business. Whether via a merger or acquisition or increased partnerships, government contractors can’t afford to sit still for long and expect to still be successful. Constantly assessing your ability to diversify offerings and increase your reach into new agencies is essential to long-term stability and growth.