Engility will provide systems engineering, technical assistance, training and operational support services and employ approximately 10, 000 workers.
Tony Smeraglinolo, current executive vice president of L-3’s services group, will be its chief executive officer.
L-3 expects to complete the move in the first half of 2012, subject to customary closing conditions. It will not be subject to a shareholder vote.
L-3 will retain its cyber, intelligence and security solutions businesses under a new national security solutions segment run by Steve Kantor, current president of L-3’s services group.
L-3 expects Engility to have 2011 pro forma sales of approximately $2.0 billion and operating income of approximately $179 million
“Our Board and management team reached this strategic decision following a comprehensive, year-long review across L-3’s entire business to address changing industry dynamics, ” said Michael T. Strianese, chairman, president and CEO of L-3. “By creating an independent leader in government services, both L-3 and Engility will be better aligned and positioned with evolving customer priorities to grow their respective market leadership positions.”