BAE Systems seeks to sell IT and analysis support businesses
24 April 2015
BAE Systems, Europe's biggest defense contractor, today said that it has hired external advisers to review its IT and analysis support businesses, an indication that it will put its US-based division for sale.
The London-based company today said in a release that, "BAE Systems regularly reviews its business portfolio and operations to remain optimally aligned with key markets and to maximise value for customers and shareholders.''
"The US-based manpower and services businesses of the Group's US Intelligence and Security (I&S) sector, which span technical, mission and IT support services and predominantly serve the US government, have generated external interest and a number of enquiries. As a result, BAE Systems has engaged external advisors to support a strategic assessment of these businesses.''
"This assessment does not include the technology / product-focused geospatial intelligence business of I&S, or the Group's cyber security and intelligence business, BAE Systems Applied Intelligence.''
"There can be no certainty that any transaction will occur. Any further announcement will be made as appropriate."
Citing a spokesman, Bloomberg reported that Morgan Stanley has been hired in the UK for the asset review, and Stone Key Partners will conduct the review in the US, while the Telegraph said that the division is believed to generate around $800 million of revenues a year.