UPDATE 1-General Dynamics raises offer for CSRA

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March 20 (Reuters) - U.S. defense contractor General Dynamics said on Tuesday it raised its offer for sector peer CSRA Inc to $9.7 billion, including $2.8 billion in debt, in an attempt to top an unsolicited bid from CACI International Inc's.

General Dynamics' revised offer under a merger agreement with CSRA's board represents $41.25 per share in cash, taking the equity value of deal to $6.9 billion from the prior $40.75 per share or $6.8 billion.

GD's revised bid is just shy of CACI's $41.79 per share offer, based on CACI's closing price as of Monday.

CACI's original offer for CSRA, announced on Sunday, was priced at $44 per share, consisting of $15 per share in cash and 0.184 CACI shares for each CSRA share.

CACI's stock fell 7.5 percent on Monday, lowering the offer's overall price. (Reporting by Sanjana Shivdas in Bengaluru; editing by Patrick Graham and Arun Koyyur)