PAE has agreed to acquire Computer Sciences Corp.‘s (NYSE: CSC) base operations, aviation and range services division for $175 million in cash as CSC enters its sixth divestiture agreement within the past seven months.
The sale of the applied technology division is expected to close during summer 2013 and 5, 400 employees will move to PAE upon the deal’s closure, CSC said Wednesday.
CSC took over the business unit after it acquired DynCorp in 2003 and the division recorded $760 million in revenue for fiscal year 2013.
PAE said it will add the unit’s military and space testing and training services to its portfolio as the company aims to grow its presence in the federal services market.
Mike Dignam, PAE president, said the division’s customers include agencies such as the Defense Department and NASA.
Mike Lawrie, CSC president and CEO, said the deal is part of the company’s strategy to grow its assets in cybersecurity, big data and cloud computing.
The company previously agreed to sell a credit services unit for $1 billion, an information technology staffing unit for $73.5 million and a hardware and software reselling business for $90 million under that strategy.