According to a report in The Washington Post, SAIC (NYSE: SAI) is looking to sell its business focused on IT solutions for oil and gas companies while seeking expansion in growth markets via acquisition. CEO Walt Havenstein noted the strategy in an investor call last week.
“To grow our oil and gas services business would have required substantial investment in management time and attention in areas outside our strategic growth areas, with significant focus on increasing our offshore capabilities, ” Havenstein said.
CFO Mark Sopp expects the move to generate about $200 million in revenue for the firm.
The Post noted that Havenstein also pointed to the firm’s new “bolder” M&A approach.
“We expect these opportunities to generally be larger in size than the ‘bolt-on’ acquisitions that characterized our earlier strategy, ” he said.
Havenstein indicated the firm would investigate opportunities for both public and private acquisition.