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 Unit08:30 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.
For more information, please visit CSC's company profile.
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