SAIC strips away its oil and gas IT businesses
Sale will allow company to improve focus on strategic growth areas
Science Applications International Corp. will become a more narrowly focused company once it completes the sale of its specialized oil and gas industry IT services to Wipro Ltd., the company announced today.
Financial terms of the planned sale were not reported.
The operations being sold comprise SAIC's U.S. oil and gas IT services business along with subsidiaries SAIC Ltd., of the United Kingdom; Science Applications International, Europe S.A.R.L., of France; SAIC India Private Ltd., of India; and its Middle East operation, SAIC Gulf LLC.
Together they employ approximately 1,450 people, the SAIC announcement states.
"The sale of these operations will enable SAIC to better focus on our strategic growth areas, including market segments in the energy sector, such as smart grid, renewable energy implementation, and energy efficiency, where we have successfully built our business through organic growth and acquisitions," said Walt Havenstein, SAIC's CEO, in the announcement.
He said it would have required investments in areas outside the company’s strategic focus, including increasing SAIC's offshore capabilities, to grow the oil and gas IT services business.
"Wipro is ideally suited to maximize the value of this profitable business," Havenstein said. "This transaction will provide the best result for the employees and customers of these operations."
SAIC International, of McLean, Va., ranks No. 5 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.
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David Hubler is senior editor of Washington Technology. Follow him on Twitter: @DavidHubler.