El Segundo, Calif.-based CSC will pay $13 per share, a total of $365 million, for Long Beach, Calif.-based First Consulting. The price is 30% higher than First Consulting’s stock price when the acquisition was announced. First Consulting during the first half of 2007 had net income of $6.8 million, down 29% from the same period a year ago. Half-year revenue rose 1.5% to $134.2 million.
First Consulting has five primary business lines. It serves providers with consulting/implementation/integration services, which account for about 23% of revenue. Outsourced information technology services for providers account for 42% of revenue, followed by services to the life sciences industry (14%), payer services (11%), and standalone software products and services (9%).
Among First Consulting’s 2,500 employees are about 1,200 in India and Vietnam supporting application development and outsourcing.
CSC, with 87,000 employees worldwide, had revenue of $14.9 billion for the 12 months ended March 30, 2007. More information is available at csc.com and fcg.com.
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