12 December 2013
The Exelis (NYSE: XLS) board of directors said it has unanimously approved a plan to spin-off its military and government services business, currently called Exelis Mission Systems, into an independent public company.
This business is currently part of the company´s information and technical services segment. The transaction is intended to be tax-free to Exelis and its shareholders, is expected to be completed by the summer of 2014, and is subject to final approval of the company´s board of directors.
Following completion of the spin-off, Exelis will retain a portfolio of mission critical, affordable and platform agnostic products and services for managing global threats, conflicts and complexities. The business will focus future investments on strengthening its four strategic growth platforms of critical networks; ISR & analytics; electronic warfare; and aerostructures.
These growth platforms, which have been strategically aligned with future customer requirements, are supported by the company´s most differentiated and enduring C4ISR capabilities such as global intelligence, surveillance and reconnaissance systems, networked communications, integrated electronic warfare, and engineering and professional services.
Following the spin-off, the company expects that revenues will reflect greater customer diversity. Today, about 30 percent of Exelis revenues are from non-US defense markets such as air traffic management, information and cyber security, commercial and international markets. Following the spin-off, it is expected that non-US defense markets will account for approximately 50 percent of Exelis revenues.
Exelis is a diversified, top-tier global aerospace, defense, information and services company that leverages a 50-year legacy of deep customer knowledge and technical expertise to deliver affordable, mission-critical solutions for global customers. The company´s website is at www.exelisinc.com