The independence of Exelis Mission Systems — currently a part of the company’s Information and Technical Services division located in Colorado Springs — is expected to be complete by summer and will then be subject to approval by the board of directors, according to the news release.
Mission Systems currently employs about 7,000 workers in more than 100 locations across 18 countries. The company’s estimated revenue for 2013 is approximately $1.5 billion.
“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,” President and CEO David F. Melcher said in the release. “This spin-off enables both Exelis and Mission Systems to become more agile, better aligned and able to more effectively meet the needs of their customers, both domestically and internationally.”
The split will allow each company to more effectively compete in their respective markets, with the soon-to-be renamed and rebranded Mission Systems working primarily on contracts with the U.S. government.
The release said that the new company will provide facilities management, logistics and network communications services and will focus its “portfolio on higher margin strategic growth platforms,” including critical networks, ISR (intelligence, surveillance and reconnaissance) and analytics, electronic warfare and aerostructures.
Upon the transaction’s completion, the newly formed independent company will be led by Kenneth Hunzeker, who has served as Mission Systems president and general manager since April 2011.
“I have full confidence in Ken’s leadership abilities and his unique combination of experiences in business and the military, which will help Exelis Mission Systems deliver strong performance as a standalone corporation,” Melcher said.
The split resulted from a vote of the board of directors and was not dependent on a vote by company shareholders.
Virginia-based Exelis was spun off from New York-based parent company ITT Corp. in 2011.