The Defense and Information Solutions business of high-tech engineering firm ITT Corp has completed the sale of its systems engineering and technical assistance services subsidiary CAS Inc to Wyle Inc, a US-based high tech systems engineering and IT…
The Defense and Information Solutions business of high-tech engineering firm ITT Corp has completed the sale of its systems engineering and technical assistance services subsidiary CAS Inc to Wyle Inc, a US-based high tech systems engineering and IT services company, for approximately US$235m.
CAS, which emplys more than 1,100 people, specialises in providing systems engineering and technical assistance services to the US Department of Defense and will complement Wyle’s existing federal government business.
The divestment is part of ITT Defense’s strategy to focus on its core business with Dave Melcher, the unit’s president, commenting: “We are pleased to have completed the sale of this business to a company that can position it for future growth. As ITT continues our portfolio alignment strategy, this divestiture will also allow us to focus on growth in other parts of our business.” ITT was recently awarded a US$126.5m contract from Earth observation operator DigitalGlobe to develop the imaging system for the WorldView-3 satellite. ITT provided similar sysatems for DigitalGlobe’s three previous satellites, QuickBird, WorldView-1 and WorldView-2. ITT also constructed the imaging payload for the GeoEye-1 satellite.
Meanwhile, ITT Corp recently netted a US$1.5bn threeyear senior unsecured revolving credit facility. JP Morgan and Citigroup were JLAs and joint bookrunners for the facility, while Bank of Tokyo Mitsubishi, Société Générale, Wells Fargo, Barclays Bank, RBS and US Bank National Association were part of the syndicate as well as documentation agents. The revolver also has the option to be increased by a further US$500m.
ITT plans to use the facility to replace and repay any outstanding amounts from the five-year revolver it secured back in November 2005.
