The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

CSC Agrees to Sell Base Operations, Aviation and Range Services Unit

Wednesday, May 29, 2013

CSC Agrees to Sell Base Operations, Aviation and Range Services Unit

08:30 EDT Wednesday, May 29, 2013

FALLS CHURCH, Va. (Business Wire) -- CSC has reached a definitive agreement with PAE for the sale of its base operations, aviation and range services business unit, Applied Technology Division (ATD), for $175 million in cash. CSC acquired ATD with the 2003 purchase of DynCorp.

This agreement, CSC's sixth divestiture in seven months, furthers CSC's transformation strategy to rebalance its portfolio of services by focusing on its core strength in next-generation technology solutions and services.

CSC will sell the aviation maintenance, base operations and maintenance, test and training range, and space range businesses of ATD, while retaining the division's training and simulation business. ATD currently performs work at more than 20 client locations in the continental United States.

"The sale of ATD supports our realignment of company assets with our strategy of leading in the next generation of technology solutions and services, including cybersecurity, big data and cloud computing," said CSC President and CEO Mike Lawrie.

PAE's dedicated focus providing mission-critical services to the U.S. government and its allied partners will ease the transition for clients and employees. ATD's senior management team and its approximately 5,400 employees will transfer to PAE as part of the agreement.

In fiscal year 2013, ATD revenue was approximately $760 million with low-to-mid single-digit operating margins. ATD revenue has been reported within CSC's North American Public Sector (NPS) and will be recast as discontinued operations.

The transaction is subject to customary closing conditions, including the receipt of various consents and an anti-trust clearance under the Hart-Scott-Rodino Act. CSC expects to close the transaction in the summer of 2013.

About CSC

For more information, please visit CSC's company profile.

Click here to subscribe to Mobile Alerts for CSC.

CSC
Marcel Goldstein
Corporate Public Relations
703-641-3271
mgoldstein@csc.com
or
Steve Virostek
Investor Relations
703-641-3000
investorrelations@csc.com

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections