Private equity firm Veritas Capital has completed an $815 million deal for Lockheed Martin’s Enterprise Integration Group business unit, Reuters reported. The division advises government agencies on weapons platforms, Reuters said, adding that Lockheed Martin sold the unit in order to avoid conflicts of interest.
(Reuters) – Defense contractor Lockheed Martin Corp said Tuesday it completed the sale of a division that advises government agencies on weapons platforms, for $815 million.
The top supplier to the Pentagon sold the Enterprise Integration Group business to private equity firm Veritas Capital. Lockheed said it shed the unit to eliminate perceptions of potential conflicts of interest that can result when contractors advise the government on weapons systems for which they end up bidding.
The division sale is one of many moves Lockheed has taken this year to streamline and cut costs as the U.S. Department of Defense, its main customer, seeks to make arms programs more affordable. (Reporting by Karen Jacobs, editing by Gerald E. McCormick)