Northrop Grumman To Sell Federal IT & Mission Support Unit To Veritas For $3.4 Bln

(RTTNews) - Northrop Grumman Corp. (NOC) said that it agreed to sell its federal IT and mission support services business to Veritas Capital for $3.4 billion in cash.

Northrop stated that the divestiture strengthens its focus on growing core businesses and creates value through portfolio management.

In 2020, the Northrop Grumman business is expected to generate about $2.3 billion in revenue.

The transaction is expected to close in the first half of 2021.

Northrop Grumman said it expects to use the sale proceeds primarily for share repurchases, to offset dilution from the transaction, and for debt retirement.

On closing, Veritas expects to combine the Northrop Grumman business with Peraton, a Veritas portfolio company that provides mission critical technology solutions to government customers.