U.S. defense contractor General Dynamics said on Monday it would buy smaller rival CSRA for about $6.8 billion to expand its information technology unit, which provides services to the U.S. Department of Defense.
The move comes as revenue at General Dynamics disappointed investors in the previous two quarters due to the U.S. administration's lack of appointees at the Pentagon and a failure by Congress to pass a federal budget.
President Donald Trump's budget request for the Pentagon is set to be announced on Monday. Trump would be seeking to make good on his promise to bolster military spending.
General Dynamics, which also makes tanks and U.S. Navy ships, said the deal is valued at $9.6 billion, including $2.8 billion in CSRA debt.
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