New Delhi, April 26 (PTI): Computer Sciences Corporation (CSC) of the US will buy rival Covansys for $1.3 billion in an all-cash deal. The buyout will double CSC’s workforce in India to 14,000.

A joint statement issued by the two companies said the acquisition would help CSC serve its clients better and improve strategic offshore offerings.

“Computer Sciences Corporation and Covansys Corporation have entered into an agreement under which CSC will acquire Covansys for $34 per share in an all-cash deal. The transaction is valued at approximately $1.3 billion, and is expected to be earnings per share neutral to CSC during the first 12 months,” CSC said in a statement.

Both the infotech companies are ranked among the top 10 places to work for in India. The acquisition approximately doubles CSC’s workforce in India to about 14,000. The Michigan-based Covansys has 6,400 employees in India.

“This acquisition furthers CSC’s strategic goals of increasing shareholder value and growing our business both organically and through acquisitions,” Van B. Honeycutt, chairman and chief executive officer of CSC, said.

“We are strengthening our capabilities and presence in India as well as creating an additional market channel for our industry, consulting and outsourcing solutions,” he added. “We believe this is an outstanding transaction for our shareholders, clients and employees,” said Raj Vattikuti, president and CEO of Covansys.

Covansys, which specialises in industry-specific solutions, strategic outsourcing and integration services, has more than 8,700 consultants and employees worldwide.

It has six international delivery centres and 20 offices worldwide, which generated revenues of $455.5 million in 2006, an increase of 4.9 per cent over that of 2005.

With approximately 77,000 employees, CSC is one of the top infotech companies in the world with revenues of $14.7 billion.

Covansys is one of the first US-based infotech services companies to establish offshore facilities in India and a pioneer in integrating offshore capabilities into its offerings.

Covansys India has centres in Bangalore, Chennai, Vadodara and Mumbai.

“With this deal, we have accelerated our India offshore business plan,” said CSC president and chief operating officer Mike Laphen.

“The CSC-Covansys combination reinforces our commitment to building a strong offshore platform and offers a broad range of capabilities to our clients,” he said.

that can be serviced directly from India or through our existing businesses,” he said.