June 4, 2015 / 10:15 PM / 2 years ago

Exclusive: CACI, Booz Allen, Leidos eye CSC's government unit - sources

(Reuters) - CACI International Inc, Booz Allen Hamilton Holdings and Leidos Holdings Inc have held exploratory discussions to acquire Computer Sciences Corp's public sector division, people familiar with the matter said on Thursday.

The discussions took place after CSC, a technology consulting services provider, said on May 19 it would split into two public companies — one to serve commercial and non-government clients globally and one to serve public sector clients in the United States.

Discussions with the interested parties are in their early stages and may not result in a transaction, said the people, who requested anonymity because the matter is confidential.

Representatives for CSC and Booz Allen declined to comment. CACI and Leidos did not respond to requests for comment.

CSC's North American public sector division offers IT and operations-related services to the U.S. Department of Defense and civil agencies of the federal government, as well as foreign, state and local government agencies. CSC estimated it would have revenues $4.1 billion for its 2015 fiscal year.

CSC's U.S. public sector business is seen as attractive to potential buyers because of the high barriers to entry for competitors.

The separation from the remaining division, global commercial, is anticipated by October. The second business, which provides information technology services and solutions partner for Fortune 1,000 companies and non-U.S. government clients, was expected to have $8.1 billion in revenue for 2015.

The breakup of CSC, which has a market capitalization of close to $9.6 billion, follows multiple attempts by the Falls Church, Virginia-based company to sell it self over several years.

Prior to its announcement of the break-up, CSC drew buyout interest from French consulting company Cap Gemini SA, computer maker Hewlett-Packard Co and Canadian consulting firm CGI Group Inc, as well as private equity firms, Reuters previously reported.

Additional reporting by Nadia Damouni in New York; Editing by Tom Brown

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