BAE Systems Plc. is in advanced talks to sell its US manpower and services businesses to private-equity firm Veritas Capital Management, Reuters reported, citing people familiar with the matter.
It an agreement is sealed, BAE would be the latest defense contractor to shed its less-profitable government consultancy operations in response to lower military spending, the report noted.
Veritas is said to have bid for the assets after BAE’s efforts to sell them to another government services contractor, Leidos Holdings, proved unsuccessful.
The deal is expected to be worth more than US$1 billion.
BAE said in April it will conduct a review of the businesses, which offer government staffing and information technology services, after it received expressions of interest from some third parties.
“It is not a fire sale… It is important to note the transaction will only occur if it creates value for our shareholders,” the British firm’s CEO, Ian King, told analysts at the end of July.
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