Lockheed, Affiliated Computer to Swap IT Assets
Lockheed Martin
(LMT) - Get Lockheed Martin Corporation Report
and
Affiliated Computer Services
(ACS)
signed an agreement to swap certain information-technology assets in a transaction that the companies expect to close in the fourth quarter of this year.
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In a press release Friday, Lockheed said it will acquire Affiliated's federal government information-technology business. At the same time, Affiliated will take over Lockheed's commercial IT business.
Affiliated will sell its unit to Lockheed for approximately $658 million, which includes $70 million payable under a five-year noncompete pact. The company will acquire Lockheed's business for about $107 million.
The agreement has been approved by the boards of both companies.
Lockheed said the acquisition of Affiliated's federal business expands its business-process outsourcing and managed services and improves its ability to support civil and defense government agencies.
Revenue from Affiliated's divested federal business totaled around $700 million for the year ended June 30. Lockheed's sales for its commercial IT business in 2002 were about $300 million.
Shares of Lockheed were lower by 59 cents, or 1.1%, at $51.75, and Affiliated was losing 76 cents, or 1.5%, to $48.79.
