Cubic closes divestiture of defense services biz

Cubic Corp. said Friday it has completed the sale of its global defense services business to Valiant Integrated Services in a continuation of a portfolio reshaping.

First announced in April, Cubic said it undertook the divestiture to focus more on growing its core defense technology manufacturing business lines and is looking for acquisitions to help reach the $2 billion-revenue mark by its 2020 fiscal year.

This decision put Cubic alongside Kratos Defense & Security Solutions and Harris Corp. as contractors that within the past year decided to part with services and focus more on products. Those moves were preceded by L3 Technologies’ and Lockheed Martin’s respective divestitures of services work in 2016.

Cubic received $135 million in cash for the business that provides training, operations, intelligence, maintenance, technical and other support services to U.S. government agencies and allied partners.

McLean, Virginia-headquartered Valiant adds approximately 3,500 employees across 10 countries and $378 million in fiscal year 2017 revenue through the acquisition.