Exelis to spin off services business by summer 2014
WASHINGTON Dec 11 (Reuters) - Exelis Inc, which was spun off from ITT Corp in late 2011, on Wednesday announced it would now spin off its military and government services business, creating a new independent firm with revenues of about $1.5 billion, and focusing the remaining portfolio on higher margin sectors.
In a statement, the company said the transaction would be tax-free to Exelis and its shareholders, and should be completed by the summer of 2014.
Exelis Chief Executive David Melcher said the plan had been unanimously approved by the company's board of directors. He said the spinoff would allow Exelis to focus better on long-term growth drivers, and would help both companies be more agile in meeting customer needs.
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