CSC to sell aviation services business unit to PAE for $175 million

Infotech Lead America: CSC will sell its base operations, aviation and range services business unit, Applied Technology Division (ATD), to PAE for $175 million in cash.

This is the sixth divestment in 7 months.

The ongoing divestment is part of the company’s strategy to rebalance its portfolio of services by focusing on its strength in technology solutions and services, CSC said on Wednesday.

CSC acquired ATD with the 2003 purchase of DynCorp.

The sale of ATD is line with CSC’s strategy of leading in the next generation of technology solutions and services, including cybersecurity, big data and cloud computing.

This agreement, CSC’s sixth divestiture in seven months, furthers CSC’s transformation

CSC will sell the aviation maintenance, base operations and maintenance, test and training range, and space range businesses of ATD, while retaining the division’s training and simulation business. ATD currently performs work at more than 20 client locations in the continental United States.

PAE’s dedicated focus providing mission-critical services to the U.S. government and its allied partners will ease the transition for clients and employees. ATD’s senior management team and its approximately 5,400 employees will transfer to PAE as part of the agreement.

In fiscal year 2013, ATD revenue was approximately $760 million with low-to-mid single-digit operating margins. ATD revenue has been reported within CSC’s North American Public Sector (NPS) and will be recast as discontinued operations.

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