Engility divests USAID business in $24M cash deal
- By Mark Hoover
- Jan 10, 2017
Engility has divested its International Resources Group subsidiary to RTI International in a $24 million cash deal.
IRG focused on the U.S. Agency for International Development market. The acquisition will expand RTI’s international development work and footprint in the food security and agriculture, energy, water, natural resources management, climate resilience and conflict areas, RTI said in a press release.
IRG also brings new capabilities in USAID management and technical training and disaster preparedness.
IRG also expands RTI’s presence in places around the world where RTI has little or no footprint, such as Rwanda and Ukraine, and bolsters its presence in other areas in which it already exists, like Guatemala, the Philippines, Senegal, Tanzania and Thailand.
L-3 Communications acquired IRG in 2008, according to a company spokesperson. The business was with Engility when it was spun out.
In an SEC filing, Engility said that it divested the business after a strategic review of its business, after which Engility determined its USAID portion of the company’s international business was no longer closely aligned with the company’s future strategic direction.
The IRG business was anticipated to make $70 million in revenue in 2017, according to the SEC filing.
IRG will operate as a wholly owned subsidiary within RTI while the transition is being made.
The McLean Group served as an advisor on the deal.
Mark Hoover is a senior staff writer with Washington Technology. You can contact him at email@example.com, or connect with him on Twitter at @mhooverWT.