Why General Dynamics Is Buying CSRA for $6.8 Billion

The transcript discusses a significant merger in the defense sector, focusing on its impact on General Dynamics and the broader IT and defense landscape. The merger is expected to expand General Dynamics' footprint in various federal agencies and position it for a major cloud contract. The market has reacted positively, with CSRA's stock rising significantly. The discussion also touches on the defense budget, highlighting new allocations and the need for appropriations before the fiscal year ends.

What strategic advantage does General Dynamics gain from acquiring CSRA?

• Increased presence in the automotive industry

• Access to international markets

• Expansion into various federal agencies

• Reduction in manufacturing costs

What is the potential value of the cloud contract that General Dynamics is positioning itself for?

• $5 billion for 5 years

• $10 billion for 10 years

• $20 billion for 20 years

• $15 billion for 15 years

How much did CSRA's stock value increase following the merger announcement?

• 31%

• 15%

• 25%

• 40%

Which company is currently the number one IT contractor that will be supplanted by the merger?

• Northrop Grumman

• Lockheed Martin

• Laitos

• Raytheon

What is the expected increase in National Defense funding between fiscal 2018 and 2019?

• $150 billion

• $100 billion

• $165 billion

• $125 billion