COMPANIES

BAE Systems considers selling U.S. services business

BAE Systems is considering selling most of its services group, which makes between $1.5 billion to $1.75 billion in revenue and employs nearly 8,000 personnel, according to FedBiz.

The businesses that BAE is considering selling includes its manpower and services businesses within the Intelligence and Security sector. The company has been getting a number of inquiries about these businesses, it said in a filing, and has turned to external advisers to get an assessment of these businesses, FedBiz reported.

The company is not considering selling its cybersecurity and intelligence business, BAE Systems Applied Intelligence. If the manpower and services business are sold, the company’s U.S. subsidiary will consist only of the electronic systems and platform and services sectors, FedBiz said.

 

Reader Comments

Mon, Aug 3, 2015

Are any of the BAE Shipyards going to sell.

Mon, Apr 27, 2015

Yes, if Fed Biz sources can be trusted, BAE Sys is selling its IC "butts-in-seats" business, always in demand by both contractors and government clients directly. The important thing for a buyer to confirm is that this business consists of real, fully loaded employees rather than 1099 contractors, who can not be sold to the government with the full multiple for off-site, non-supervised personnel. Also, the book of business needs to be examined; customarily, butts-in-seats contracts can be very unstable in term or demand load. Further, just renting staff to the agencies carries risks, even if the contractor provides no supervision, e.g., the Snowden example. One would think that the firms that would be highly interested in such a business because they have done a lot if are Booze & Allen and Deloitte and possibly the soft side of SAIC.

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