CSC ENTERS INTO AGREEMENT TO ACQUIRE BEARINGPOINT OPERATION IN BRAZIL
News Release -- July 10, 2009
Acquisition to Strengthen Horizontal and Vertical Industry Capabilities, Enhance Opportunities in Key Global Market
FALLS CHURCH, Va., July 10 -- CSC (NYSE: CSC) today announced that it has entered into an agreement to acquire BearingPoint's Brazilian operation, which specializes in consulting and systems integration services. The acquisition supports CSC's multi-year strategic growth plan by expanding the company's presence in Brazil, the world's ninth-largest economy, and adding key horizontal capabilities and vertical industry expertise. Financial terms of the transaction were not disclosed. The transaction is expected to be complete by July 31, 2009, and is subject to the satisfaction of customary closing conditions and the approval of the court overseeing BearingPoint's corporate reorganization.
With 550 employees, a strong leadership team and offices in Sao Paulo, Rio de Janeiro and Brasilia, the operation will enhance CSC's ability to support existing customers with a presence in Brazil, adding a robust set of new clients, and positions CSC to pursue and win new business in the region. Approximately two-thirds of the staff are qualified to implement and support SAP solutions. Additional horizontal capabilities include project management, strategy consulting and applications management. Language capabilities include English and Spanish, in addition to Portuguese.
The acquisition will also expand CSC's industry vertical expertise and clientele in its Chemical, Energy and Natural Resources and Technology and Consumer sectors. Clients of the Brazilian business include some of the world's largest producers of oil and gas, and iron ore, as well as some of the world's most respected brands in other sectors.
"When completed, this acquisition will mark a milestone in our strategic growth plan and the expansion of our service delivery capabilities in high-growth geographies," said CSC Chairman, President and Chief Executive Officer Michael W. Laphen. "With this step, we will establish a meaningful foothold in one of the world's largest emerging markets, add capabilities that extend and complement our own and position CSC for increased success both internationally and domestically."
CSC's Latin American presence also includes existing operations in Argentina, Chile, Colombia, Costa Rica, Guatemala, Peru and Mexico.
CSC is a global leader in providing technology-enabled solutions and services through three primary lines of business. These include Business Solutions and Services, the Managed Services Sector and the North American Public Sector. CSC's advanced capabilities include systems design and integration, information technology and business process outsourcing, applications software development, Web and application hosting, mission support and management consulting. Headquartered in Falls Church, Va., CSC has approximately 92,000 employees and reported revenue of $16.74 billion for the 12 months ended April 3, 2009. For more information, visit the company's Web site 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" within the meaning of the Private Securities Litigation Reform Act of 1995. 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, 2009 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 events or otherwise except as required by law.