CSC had announced a tentative deal with Republic Services, a subsidiary of bank holding company Republic New York, earlier this month.
Under the agreement, El Segundo, California-based CSC will acquire and manage Republic National Bank's data center, help-desk, network, and communications operations. To date, 113 of the 114 Republic employees have accepted jobs with CSC in New York City.
In other news today, CSC announced a three-year, $5 million services contract with Norwegian insurance firm Gjensidige Group. Based in Oslo, Gjensidige has more than 1.3 million customers and 4,600 employees in 230 offices throughout the country.
Next month, CSC is expected to finalize a $1 billion, 7 to 10-year contract with Pratt & Whitney. The firm, along with rival IBM Global, is also a competitor for a huge contract to do up to $1 billion in computer work for Raytheon.
So far in fiscal 1999, CSC has announced about $5 billion in U.S. commercial, federal, and international contracts. Last fiscal year, CSC signed $2.2 billion in contract deals.
While CSC has inked its share of high-profile deals in recent months, Morgan Stanley Dean Witter analyst David Togut said in a research note that he expects the company's internal revenue and earnings growth to become "more difficult," for the quarter, as CSC will not benefit from substantial tax reductions of the past four quarters. Although acquisitions should boost the company's top line by about $80 million, he said, CSC is reporting "modest" outsourcing revenues that may limit internal revenue growth to 12 to 13 percent.
CSC is expected to announce earnings May 5.