and Chief Executive Officer of Parent subsequently sent a letter to the President and Chief Executive Officer of CSRA confirming Parent’s interest in the potential acquisition of CSRA for $40.00 per Share, subject to: (1) settlement of the Maryland Litigation with a corresponding adjustment in the purchase price to account for the financial impact; (2) confirmatory due diligence; (3) negotiation of mutually agreeable terms and conditions; and (4) approval by the Parent Board of Directors. In this letter, it was noted that Parent was proposing an all cash transaction and was prepared to come to terms expeditiously. On January 13, 2018, Parent received, through Stone Key from Evercore, a draft of a proposed Merger Agreement.
During the weeks of January 15, 2018 and January 22, 2018, Parent worked with its lead transaction counsel, Jenner & Block LLP (“Jenner & Block”), and local counsel in Nevada, Brownstein Hyatt Farber Schreck LLP, to identify key issues presented by the draft Merger Agreement and prepare amark-up of the draft Merger Agreement.
On January 22, 2018, members of management of Parent and representatives of Stone Key attended presentations by CSRA’s senior management and met with senior management of CSRA to discuss CSRA’s major programs and potential areas of synergy between the businesses of Parent and CSRA.
During the weeks of January 22, 2018 and January 29, 2018, Parent continued its due diligence of CSRA, including through a series of meetings and teleconferences with members of management of CSRA. On or about January 23, 2018, management of Parent was informed by management of CSRA that CSRA management believed that it was close to resolving the Maryland Litigation.
On January 26, 2018, on behalf of Parent, Jenner & Block provided CSRA’s lead transaction counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP (“Paul Weiss”), a revised draft of the proposed Merger Agreement, and on January 29, 2018, Paul Weiss returned to Jenner & Block a further revised draft of the proposed Merger Agreement.
Also on January 26, 2018, Evercore and Macquarie Capital (USA) Inc., one of CSRA’s financial advisors, contacted Stone Key and requested that Parent submit a further revised Merger Agreement and best and final offer by February 2, 2018 for consideration by the Company Board.
From January 29, 2018 through February 8, 2018, representatives of Jenner & Block and representatives of Paul Weiss engaged in a series of discussions and exchanged drafts of the proposed Merger Agreement while Parent’s due diligence investigation of CSRA continued.
On February 2, 2018, the Chairman and Chief Executive Officer of Parent communicated with the President and Chief Executive Officer of CSRA and offered a price of $40.50 per Share, payable in cash. This offer was subsequently confirmed in a letter of the same date from the Chairman and Chief Executive Officer of Parent to the President and Chief Executive Officer of CRSA.
On February 3, 2018, the President and Chief Executive Officer of CSRA communicated with Stone Key to indicate that Parent would need to increase the value of its offer in order to proceed with an acquisition of CSRA. Later on February 3, 2018, the Chairman and Chief Executive Officer of Parent informed the President and Chief Executive Officer of CSRA that Parent was willing to increase its offer price to $40.75 per Share, payable in cash.
During February 8, 2018 and February 9, 2018, representatives of Jenner & Block and representatives of Paul Weiss, on behalf of their respective clients, worked to finalize the proposed Merger Agreement and related transaction documents.
On February 8, 2018, the Parent Board of Directors, at a regularly scheduled meeting, considered the potential acquisition of CSRA and approved the proposed Merger Agreement and proposed acquisition of CSRA at a price of $40.75 per Share, payable in cash, subject to resolution of the Maryland Litigation. In this regard,
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