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Veritas Capital in $850m DynCorp deal

The New York defense and aerospace investor has agreed to acquire the aviation maintenance and security training provider from Computer Sciences Corp.

New York-base private equity firm Veritas Capital has agreed to acquire DynCorp International from Computer Sciences Corp. (CSC) in a deal worth $850 million (€639 million).

The transaction includes $775 million in cash payable at closing in addition to $75 million of senior preferred stock, according to a statement. CSC plans to use proceeds from the sale to reduce debt, repurchase stock, fund acquisitions, and for other corporate purposes.

DynCorp maintains large aircraft fleets, overhauls weapons systems, and support equipment for clients such as U.S. Department of Defence and the United Nations. It also provides training for international law enforcement agencies and personal security services.

The acquisition is expected to be completed in the first quarter of 2005.

Founded in 1992, Veritas Capital invests in a broad range of companies through middle market buyouts, growth capital investments, and leveraged recapitalizations, with an emphasis on the defence and aerospace industry.

Most recently in July it completed the acquisition of McNeil Technologies, the security and intelligence company, which services the US military, national security and Homeland Defense market. In April, Veritas sold TRAK Communications, a microwave sub-systems manufacturer to military and civil engineering group Smiths for $115.5 million.