Blackwater founder reported selling firm

LOS ANGELES, Dec. 17 (UPI) -- The private security firm formerly known as Blackwater is being sold, people close to founder Erik Prince told The New York Times.

Prince has reached a deal to sell the company, now called Xe Services, to a group of investors based in Los Angeles, the Times reported.

Blackwater, once a key contractor in Iraq and Afghanistan, has been under fire since its guards were accused of killing 17 civilians in Baghdad in 2007.

The company, its executives and personnel have faced civil lawsuits, criminal charges and congressional investigations of murder and bribery. Five former executives were indicted on federal weapons charges in April.

The sale, expected to be announced Friday, follows the State Department's threat to withhold contracts as long as Prince owns the firm.

While Prince is expected to quit any management role, he will have a financial interest in the company's future. He is to be paid an "earnout," a payment that depends on financial performance over the next several years.

One of the lead investors is Jason DeYonker, who advised Prince in developing Blackwater's business plan and helped negotiate its first government contracts.

People involved in the talks said the transaction was worth about $200 million.