The Bethesda, Maryland-based company is working with the previously named private-equity groups Texas Pacific Group, Warburg Pincus, and Blackstone Group on plans to buy and split up CSC, according to the Wall Street Journal.
Lockheed has its eye on CSC’s valuable government contracts. In CSC’s most recent annual results, the company made $4.7bn of its $14.1bn in sales from the US federal government, of which $2.9bn came from the Department of Defense.
The two companies have worked together before, with CSC subcontracting on some of Lockheed’s deals including the six-year $500m contract it won last month with the US government to provide IT services for the 2010 Census.
Lockheed has more than enough resources to participate in such a takeover. It is currently valued at $27bn and has over $3bn in cash. For the third quarter, Lockheed announced sales up 9% at $9.2bn, with net earnings rising to $427m from $307m a year ago.
