SAIC Bets on the Cloud With $1.2B Unisys Deal
Acquisitive government services contractor Science Applications International Corp. (NYSE: SAIC) is back on the march, agreeing to buy the federal business of Unisys (NYSE: UIS) for $1.2 billion in cash.
The deal is opportunistic, with Unisys eager to raise funds to pay down its debt and reduce pension obligations, but also strategic. SAIC is expanding its cloud expertise at a time when cloud is growing in importance among government customers and adding scale in response to its competitors bulking up.
The deal is not without risk, but assuming SAIC can integrate Unisys successfully and pay down the debt it is taking on, the strategic rationale to the purchase is strong.
Source Fool.com
