Computer Sciences Corp. has agreed to buy Mynd, formerly Policy Management Systems Corp., for $568 million in an all-cash deal. The purchase is expected to enhance CSC’s ability to serve insurance and financial services clients. Computer Sciences, one of the world’s largest computer-services providers, is expected to begin its offer by June 27.
The deal will make Mynd part of CSC’s financial services group based in Austin, Texas. It is structured as a $16 per share cash tender for no less than two thirds of the outstanding stock, followed by a merger at the same price per share. There are an estimated 35.5 million of the former Policy Management Systems shares outstanding.
The merger agreement comes just five months after CSC filed suit against Policy Management, accusing the company of unfair competition and theft of trade secrets in the development of an insurance product. Policy Management then countersued CSC, alleging defamation, trade disparagement and unfair trade practices.
The case was scheduled for trial in December. CSC told Reuters the deal should add to earnings in its current fiscal year and it expects to realize savings through cost and expense reductions associated with redundancies, including workforce reductions and consolidation of computing and operating facilities. CSC also told Reuters it will finance the acquisition with short-term securities, including floating-rate notes and commercial paper.
Topics Mergers & Acquisitions
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