MERGERS & ACQUISITIONS
SAIC completes sale of test and evaluation business
American Systems picks up 300 employees and expands skills
- By Nick Wakeman
- Nov 13, 2012
Science Applications International Corp. and American Systems Corp. have completed the sale of SAIC’s test and evaluation business.
Terms of the deal were not disclosed by American Systems, who is picking up 300 SAIC employees with skills in areas such as testing, scientific, engineering, logistics, administrative and ancillary support. The deal was first announced in September.
The transaction will help American Systems build on work it is doing with the Defense Information Systems Agency’s Joint Interoperability Test Command, the company said.
“The Test & Evaluation market traditionally experiences remarkable growth as conflicts are winding down. Innovative technologies developed to support various divisions of our military now need to achieve interoperability. We see this area as a huge growth opportunity for American Systems,” said president and CEO William C. Hoover in a statement.
For SAIC, the deal was announced shortly after the company made the decision to split into two separate companies.
The investment bank Houlihan Lokey acted as an advisor to SAIC in the sale. In a statement, Houlihan officials said that the transaction “serves as further evidence of ongoing strategic portfolio shaping initiatives occurring across the industry, including divestitures, carve-outs, and spinoffs.”
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.