Northrop Grumman has completed the divestment of its IT services business to an affiliate of US-based private equity firm Veritas Capital for $3.4bn.
As previously agreed, the divested business will combine with Peraton, which focuses on providing intelligence, communications and other services to select federal agencies and commercial entities.
The combined business will operate as Peraton and will be led by Peraton chairman, president and CEO Stu Shea.
Shea said: “With the successful completion of this transformational acquisition, we’re excited to welcome the many talented employees from Northrop Grumman’s integrated mission support and IT solutions business to the Peraton family.
“Together we will position Peraton to deliver an unrivalled range of trusted technology capabilities and solutions to support customers’ missions of consequence across the intelligence community, department of defence, federal civil and health agencies, and state and local governments.”
The deal will enable Northrop Grumman to provide more focus on its core businesses. The company intends to use the proceeds received from this transaction for share repurchases and debt retirement.
Veritas CEO and managing partner Ramzi Musallam said: “The completion of this transaction brings together two dynamic businesses with complementary, mission-critical solutions and capabilities, creating an industry-leading platform with a shared commitment to customer success.
“This milestone kicks off the next exciting phase of growth for Peraton, and we look forward to working closely with Stu and the rest of the leadership team to continue delivering high-end, technology-enabled services that meet the complex needs of government agency customers.”
In December, Northrop Grumman won a contract to deliver XM813 Bushmaster Chain Guns for US Army’s Stryker Infantry Carrier Vehicles (ICVs).