Northrop Grumman Corp is selling its federal IT and mission support services business to private-equity firm Veritas Capital for $3.4 billion in cash, the U.S. weapons manufacturer said on Monday.
Northrop Grumman said it expects to use the cash for share buybacks and to pay off debt. The company had net long-term debt of $14.26 billion at the end of September.
The business, which is expected to generate $2.3 billion in revenue in 2020, will be combined with Peraton – a company owned by Veritas that provides intelligence, cyber and homeland security services to federal agencies and commercial entities.
The deal is expected to close in the first half of 2021.
Source: Reuters.com