NEW YORK, July 29 (UPI) -- New York's L-3 Communications Holdings, Inc. plans to spin off to its shareholders a new, independent, publicly traded government services company.
The transaction, which is intended to be tax-free to L-3 and its shareholders, is expected to be completed in the first half of 2012.
The new public company, named Engility, will be a leader in systems engineering and technical assistance, training and operational support services for the U.S. Department of Defense and other U.S. government agencies, as well as civil and international customers.
L-3 said these businesses are currently part of L-3's Government Services segment.
As an independent entity, Engility will be able to more effectively address customers' priorities with cost-effective and innovative solutions and enhance its operational efficiency, L-3 said. It will also expand its stand-alone growth opportunities beyond L-3's areas of strategic focus, unencumbered by L-3's potential Organizational Conflicts of Interest.
In 2011, Engility is expected to have pro forma sales of approximately $2 billion, operating income of approximately $179 million and depreciation and amortization expense of approximately $14 million.
L-3 will retain its Cyber, Intelligence and Security Solutions businesses, which are part of L-3's Government Services segment.