Northrop Grumman Selling Federal IT and Mission Support Business for $3.4 Billion

   By Stephen Nakrosis

Northrop Grumman Corp. on Monday said it would sell its federal IT and mission support services business to Peraton, an affiliate of Veritas Capital, for $3.4 billion in cash.

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

Veritas said the business, which "provides a wide range of advanced technology solutions including cybersecurity, data analytics, cloud, mission-critical application development and advanced engineering to defense, intelligence, space, civil and health customers," is expected to generate $2.3 billion in revenue this year.

Veritas said it expects to combine the newly acquired business with Peraton after the deal closes.

"This divesture allows us to drive value and reflects our strategy of focus on growing core businesses where technology and innovation are the key differentiators," said Kathy Warden, chairman, chief executive and president of Northrop Grumman.

Stu Shea, chairman, president and chief executive of Peraton, said, "We look forward to welcoming the federal IT and mission support services business' experienced team to Peraton."

The deal is expected to close in the first half of next year.

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

December 07, 2020 18:33 ET (23:33 GMT)

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