Exelis plans to spin off its military and government services business into an independent pure-play services firm, leaving the parent company to focus on four strategic growth areas. The move is expected to broaden the firm’s reach beyond the defense market.
The services business, currently called Exelis Mission Systems, is part of the company’s information and technical services segment. The spinoff is expected to be complete by the summer of 2014, according to a company announcement.
“We are repositioning our businesses to enhance our focus on the long-term growth drivers that will enable us to remain well-positioned in an evolving global market environment,” said David F. Melcher, chief executive officer and president of Exelis.
The company plans for its future investments to strengthen its offerings in critical networks, ISR and analytics, electronic warfare and aerostructures. It expects to see its revenues from non-defense markets to climb from 30 percent of its total to about half as a result.
Meanwhile, Exelis Mission Systems is in for a new name and rebranding as a provider of facilities management, logistics and network communications services. It will become a pure-play services provider. Kenneth W. Hunzeker, president and general manager of Exelis Mission Systems since April of 2011, will continue to lead the company after the spinoff is complete, according to the Exelis announcement.