CSC Announces Filing of Form 10 for Planned Spin-off of U.S. Public Sector Business
News Release -- July 13, 2015
Important Step Toward Company Separation Announced May 19
Separation Will Sharpen Strategic Focus for Commercial and Public Sector Businesses; Transaction Expected to Close by October 2015
FALLS CHURCH, VA, July 13, 2015–Computer Sciences Corporation (NYSE: CSC) today announced a milestone in the planned spin-off of its U.S. public sector business into a separate, publicly traded company with the filing of an initial Form 10 Registration Statement (Form 10) with the U.S. Securities and Exchange Commission.
The intent to separate CSC into two companies – one to serve public sector clients in the U.S. and one to serve commercial and government clients globally – was announced on May 19. The spin-off of the public sector business will be effected through a one-for-one distribution of the new entity’s stock to CSC shareholders, and will include a special dividend of $10.50 per share at closing.
“Today’s filing is an important step in the separation of CSC into two pure-play companies,” said CSC CEO Mike Lawrie. “Each will be uniquely positioned for growth and leadership in their sectors, and to drive value for customers and shareholders.
“We have made solid progress in our process so far and remain on track to complete the transaction in the next several months.”
The U.S. public sector company, consisting largely of CSC’s North American Public Sector (NPS) business, will be a top three provider of mission-specific IT, infrastructure and business services to U.S. federal, state and defense agencies. Upon separation, it will take the name Computer Sciences Government Services, Inc. (Computer Sciences GS), reflecting both the focus of the new company and the Computer Sciences Corporation heritage.
Lawrence B. Prior III, currently executive vice president and general manager of NPS, is expected to serve as the president and chief executive officer of Computer Sciences GS, pending approval of the new company’s board of directors. Prior has more than 30 years of public and private sector experience, with an extensive background in intelligence, security, technology and defense initiatives.
The commercial business – which will keep the CSC name and brand after the separation – will move forward as the trusted information technology (IT) services and solutions partner for Fortune 1,000 companies and non-U.S. government clients, leveraging its industry, infrastructure and consulting expertise to lead customers on their digital transformation journey.
To review the Form 10 filing on the SEC’s web site, use this link.
Computer Sciences Corporation (CSC) is a global leader of next generation information technology (IT) services and solutions. The Company's mission is to enable superior returns on our clients’ technology investments through best-in-class industry solutions, domain expertise and global scale. CSC has approximately 70,000 employees and reported revenue of $12.2 billion for the 12 months ended April 3, 2015. For more information, visit the company's website at www.csc.com.
All statements in this press release and in all future press releases that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent the Company’s intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside the Company’s control. These factors could cause actual results to differ materially from such forward-looking statements. For a written description of these factors, see the section titled “Risk Factors” in CSC’s Form 10-K for the fiscal year ended April 3, 2015 and any updating information in subsequent SEC filings. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent event or otherwise, except as required by law.