Computer Sciences Corp (NYSE: CSC) of Falls Church, Virginia, is seeking to increase its acquisition spending, according to Mike Mancuso, chief financial officer. The Wall Street Journal quoted Mancuso stating that the IT-services group plans to spend USD 250-500 M on average, annually, over the next three years to acquire businesses working in cyber security, healthcare and cloud computing.
Computer Sciences Corp was holding cash of USD 2.8 billion as of 2 April this year, the report said. The article containing the information was focused on an apparent new willingness of companies to make acquisitions.
CSC has been falling behind among top Businsess Process Outsourcing players that have been consolidating too. They had no choice but to jump on the bandwagon of inorganic growth. Depending upon the industry and domain, we will likely see increased number of acquirers with deep pockets chasing similar deals and inevitabely pushing transaction multiples and valuations higher.