General Dynamics' IT services arm makes new divestiture

General Dynamics’ IT services segment has made another move to reshape the portfolio through a divestiture of another business they see as not in their core.

GDIT has sold their state and local government “Next Generation 911” business to Comtech Telecommunications for an undisclosed sum. Terms of the transaction are undisclosed but Comtech has hired approximately 60 GDIT employees, according to a release.

In acquiring CSRA last year, General Dynamics doubled the size of the IT services business to nearly $10 billion in annual revenue at the time to go roughly neck-and-neck with scale leader Leidos at the time.

That transaction also preceded what clearly looks like an ongoing portfolio review process at GDIT, just like what many others do after making big-ticket acquisitions.

GDIT last year made a pair of divestitures: a public facing call center business to Maximus in a $400 million cash transaction and a Navy systems engineering business to CACI International to avert an organizational conflict of interest.

General Dynamics IT had services revenue of around $8.3 billion this year.

About the Author

Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at rwilkers@washingtontechnology.com. Follow him on Twitter: @rosswilkers. Also connect with him on LinkedIn.

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