San Diego’s Cubic Corporation (NYSE: CUB), a technology provider of integrated solutions and other support services to the U.S. government, said on April 19 that it will sell its Cubic Global Defense (CGD) Services business to Virginia-based Valiant Integrated Services for $135 million cash.
The transaction is anticipated to be completed within 30 to 60 days, subject to customary closing conditions and regulatory approvals, according to a press release.
“Cubic is focused on maximizing long-term value for our shareholders by delivering superior value to our customers,” said Bradley H. Feldmann, chairman, president and chief executive officer of Cubic Corp.
Feldmann said the company believes the current market dynamics are driving consolidation in the defense services industry, and the scale required to compete has increased meaningfully.
He added the transaction will allow the services business and its employees to be part of a more appropriately focused platform that will be better positioned to grow.
CGD Services business had fiscal year 2017 revenue of $378 million and is comprised of approximately 3,500 employees working in 10 countries throughout the world.