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Dealwatch: Allen & Overy wins stateside role on merger creating $5.5bn US government IT giant

Allen & Overy’s (A&O) New York office and Debevoise & Plimpton have won roles advising IT company CSC on its combination with US public sector tech outfit SRA to create a company with $5.5bn in revenues and billed as the ‘largest pure-play IT services provider serving the US government sector’.

The soon-to-be split CSC will combine its government services unit, Computer Sciences Government Services (CSGov), with SRA, creating a company with combined annual sales of $5.5bn and a workforce of nearly 19,000 employees.

A&O advised CSC on the deal which sees CSGov’s shareholders own 84.7% of the new company. Its New York-based team was led by M&A partner Peter Harwich, alongside the firm’s head of tax Jack Heinberg and co-head of antitrust Elaine Johnston. In May, A&O advised CSC when it first announced its was to separate its government services unit into two independent publicly traded companies, for which Harwich also led.

Debevoise is acting for both SRA and its owner Providence Equity Partners, with a team led by partners Margaret Davenport and Michael Diz, along with partners Gary Friedman, Jonathan Lewis, Pierre Maugüé and Steven Slutzky.

Under the deal, SRA’s shareholders will own 15.3% and will receive $390m in cash. The deal aims to close before the end of November 2015, when CSC’s is set to separate its government services unit.