Northrop to sell TASC for $1.65bn

Defense contractor Northrop Grumman has agreed to sell its advisory services division TASC to two buy-out firms, General Atlantic and Kohlberg Kravis Roberts & Co. in a cash deal worth $1.65 billion.

Northrop Grumman expects net proceed of $1.1 billion from the sale. The proceeds will be used to repurchase shares.

Chantilly-based TASC, which has a workforce of 5,000 people, provides its services to intelligence, defense as well as civil agencies.

The deal is supposed to close by the end of 2009.

Previous month, Northrop raised its 2009 outlook after reporting better-than-expected growth in revenue.

However, company's net income plunged nearly 4 per cent to settle at $490 million as compared with $512 million a year ago.

TASC, which came to existence in 1966, was acquired by Northrop in 2001.