SAIC sells T&E unit to American Systems

SAIC is divesting its test and evaluation business to American Systems Corp. for an undisclosed amount.

Science Applications International Corp. is shedding its test and evaluation business by selling it to American Systems Corp.

Terms of the deal are not being disclosed but for American Systems, the acquisition brings added capabilities and resources in areas such as testing, scientific, engineering, logistic, administrative, and ancillary support it can provide to customers.

The test and evaluation market is one that American Systems has targeted for growth, said Bill Hoover, the company’s president and CEO. The acquisition strengthens the company’s portfolio in this area, he added.

The deal is expected to close by mid-October and will add 300 new employees to American Systems. The acquisition will become part of the company’s human capital and managed services group led by Jason Frye.

In a way, the sale is a homecoming for the SAIC unit, as American Systems is one of the largest employee-owned companies in the United States, and SAIC was the largest employee-owned technology companies before entering the public market in 2005. The investment bank, Houlihan Lokey, was an advisor to SAIC in the sale.

The sale also comes on the heels of SAIC’s announcement that it would split into two companies. One focused on technical services and IT; and the other on high-end science and technology solutions. That split likely will not be completed for another year.