Northrop Grumman Said to Explore Technology Services Unit Sale

(Bloomberg) -- Northrop Grumman Corp. is considering a sale of its technology services business, which could fetch at least $3 billion, according to people with knowledge of the matter.

The company is working with an adviser on a strategic review of the unit, said the people, who asked not to be identified because they weren’t authorized to speak publicly.

A representative for Northrop Grumman declined to comment.

Technology services reported $457 million in operating income on sales of $4.1 billion in 2019, compared with $443 million in operating income on $4.3 billion in sales during the previous year, according to its annual report. The business provides services including information technology and mission support for the U.S. Department of Defense and other federal agencies.

The segment was retired as a reporting segment in January 2020.

Northrop Grumman fell 2.1% to $295.80 at 2:07 p.m. in New York on Wednesday, giving the Falls Church, Virginia-based company a market value of about $49.3 billion.

One of world’s largest defense contractors, Northrop Grumman acquired Orbital ATK Inc. in 2018, its last big acquisition.

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