Defense Contractor Mumbo Jumbo In The United States – Trump-Backed Carousel

The defense industry is one of the largest single lines of business on planet Earth, and is almost exclusively funded by governments around the globe. Coining the trade as the attack industry is likely more accurate, but the important fact herein remains – business is booming.

CACI International, a defense contractor for the United States of America, made clear on Sunday, March 18, 2018, that it is open to a merger with CSRA, a larger defense company.

It appears the offer was in contest to CSRA’s potential acquisition by General Dynamics, the largest of the three organizations, which was planned to reach a whopping $6.8 billion.

Over one month ago, CSRA was open to selling its entire company to General Dynamics for just $40.75 per share of common stock. Seeing as the Trump administration will almost certainly spend more on defense than his previous counterpart, defense companies are aiming to combine with one another, as just a few defense contracts are offered to a few companies – contracts typically aren’t split up into multiple pieces.

Experts believe that CACI International’s offer may be found as attractive by CSRA, especially since its share price has risen upwards of 20 percent since December 2017. With stock steadily becoming more valuable, the organization can effectively offer its stock as currency in transactions.

CACI is worth roughly $3.9 billion, in terms of market capitalization, whereas CSRA is nearly twice as large, at $6.7 billion.

If CSRA backs out of its deal with General Dynamics, it owes the latter $204 million in cash.

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