FAIRFAX, Va. (AP) — SRA International Inc. said Friday its board has agreed to a $1.88 billion buyout offer from private equity firm Providence Equity Partners.
The company, which provides technology and consulting services, said stockholders will receive $31.25 in cash for each share they own. The deal represents a 10.2 percent premium over SRA's closing stock price of $28.36 on Thursday.
SRA recommended that its shareholders approve the deal as well.
"The government information services market is a highly attractive area of investment for Providence, and SRA is a leading innovator within the national security, civil government, global health and intelligence sectors," said Julie Richardson, a managing director at Providence, in a statement.
SRA said it will keep its headquarters in Fairfax, Va., and maintain its offices around the world after the transaction closes.
Founder and Chairman Ernst Volgenau, who owns 21 percent of SRA's outstanding shares and 71 percent of the voting rights, has agreed to vote his shares to approve the sale, the company said.
SRA has been the subject of buyout speculation for several months. It said that it "never received, and thus never rejected, an offer at an erroneously reported aggregate value of $2 billion."
The sale is expected to close in SRA's fiscal first quarter, which starts July 1.
Shares of SRA rose $2.90, or 10.3 percent, to $31.27 in morning trading. In the past 52 weeks, the stock has traded between $17.12 and $30.83.