01 Apr 14. Exelis (NYSE: XLS) announced that the new publicly traded military and government services company that will result from the planned spin-off will be named Vectrus. Exelis previously announced the planned spinoff of its Mission Systems division, currently part of the company’s Information and Technical Services segment, in December 2013.
Vectrus is a blended name derived from the words Vector and Trust. Vector represents strong forward direction, while Trust represents the essence of the new company’s commitment to its customers. A comprehensive roll-out of the new brand will take place at the completion of the spin-off.
“We are pleased to introduce Vectrus today,” said Dave Melcher, president and chief executive officer of Exelis. “While the brand will be new to the market, the experienced Vectrus team will continue to build on a legacy of delivering infrastructure asset management, logistics and supply chain management services, as well as information technology and network communication services, to U.S. government customers worldwide.”
As a pure-play services provider, Vectrus will capitalize on more than 50 years’ experience in the services market. With nearly 7,000 employees currently operating in more than 100 locations in 18 countries, Vectrus is well-positioned to continue to deliver its broad range of capabilities as an independent entity. Following completion of the spin-off, Exelis will have greater focus on its four strategic growth platforms: Critical Networks, ISR & Analytics, Electronic Warfare, and Aerostructures, as well as continue to capitalize on its mature business areas of networked communications and night vision. The transaction is intended to be tax-free to Exelis and its shareholders and is expected to be completed by the summer of 2014, subject to final approval of the board of directors of Exelis. (Source: Yahoo!/BUSINESS WIRE)
01 Apr 14. Arotech acquires UEC Electronics. US firm Arotech is to acquire electronics manufacturer UEC, the two companies announced on 1 April. South Carolina-based UEC is to be integrated into Arotech’s Battery and Power Systems division. The acquisition is to be structured through a cash and equity swap, with Arotech purchasing the company through a combination of USD28m in cash and 775,000 shares in Arotech common stock. An additional earn-out option of USD5.5 million over two calendar years is also included in the deal. The acquisition, funded through a bank loan, is expected to be repaid over the next five years from the company’s operating cash flow. (Source: IHS Jane’s)
02 Apr 14. CACI International cuts FY 2014 earnings forecast. Defence information solutions and services provider CACI International Inc. decreased its fiscal year 2014 (FY 2014) profit and sales targets, citing delays to contract awards. The company now expects revenue for FY 2014 to range between USD3.5bn and USD3.6bn. Net income is expected to range between USD130m and USD140m. CACI’s January forecast estimated USD3.65-3.8bn in revenue. “Our lower FY 2014 guidance reflects reduced government spending and delays in award activity,” said CEO Ken Asbury. “We are disappointed that these factors have not been mitigated by the passing of the 2014 appropriations act, as we had anticipated.” (Source: IHS Jane’s)
01 Apr 14. Following its late 2013 acquisitions of two simulations companies, Textron is relaunching its consolidated simulations group under the banner TRU Simulation + Training Inc. The group, which includes parts of Textron’s prior business that was part of AAI, represents revenue of about $100m and will be evenly split between military and civil, as well as domestic and international customers. Because each of the three businesses brought slightly different components to the new group, the current plan is to grow each location with no intent to consolidate, the relaunched groups CEO, James Takats, said. Textron isn’t the only company to look at the training and simul