Software Giant Makes Takeover Bid

Thu., Feb. 12, 1998

From Staff And Wire Reports

Computer Associates, the No. 1 business software maker, is offering to buy a computer services provider for $8.4 billion in cash in a bid that would be the second-biggest computer industry takeover ever.

Computer Associates on Wednesday made public its offer to acquire the larger Computer Sciences Corp., an El Segundo-based company that provides services for a variety of computer systems used by business and government.

Computer Associates said it needs Computer Sciences expertise and employees to meet customers demand for services to go along with its popular data management software. The deal also would boost Computer Associates’ ability to compete with IBM, company officials said.

“In the past two months there have been so many clients who we wished we could come out and offer broader solutions to,” said Sanjay Kumar, Computer Associates’ president and chief operating officer.

The deal would create a combined company with 51,000 employees and annual revenues of about $11 billion.

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Software Giant Makes Takeover Bid

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