- Dismantle Big Banks, Not 'Coddle' Them: Fed's Fisher
- Wall Street Hiring Again, but Top Talent Hard to Find
- Dell Shares Smacked as Earnings, Sales Miss Forecasts
- The 'Real' Jobless Rate: 17.5% Are Out of Work
- Oprah to Leave Syndication in 2011
- High-Roller Sues Harrah's After Losing Millions at Casino
- The Art of the High-End Comic Strip
- In a Tough Market, Luxury Condos Are Going to Auction
- Four Questions to Ask About the $6,500 Home Tax Credit
- Drugs, Booze and Vegas
- Expect a 5-10% Market Pullback: Stock Picker
- Dell Has Some Explaining to Do
- 3 Stock Picks for This Volatile Environment: Portfolio Manager
- Tamminen: California Is At It Again
- Iverson Wasn't A Popular "Answer"
- Nov. 19: Unusual Volume Leaders
- 3 Financial Stocks May Lead Final Rally: Market Researcher
- My Top 10 Marketing Ideas For Winless Nets
- S. Korean minister nixes new US trade negotiations
- Hawaii marine monument to welcome teachers
- Heidi Klum wows crowd at Victoria's Secret show
- Former CEO of Bricsnet indicted for embezzlement
- Caribbean territories feud over rum tax benefits
- High-roller files civil suit against Harrah's
- Case of SC's '3 Hebrew Boys' heads to jury
- Oil giant donates $1M to catalog Stevens papers
- Alcoa idles Italy smelters, hurting 2,000 workers
Text Size 
LOS ANGELES - Northrop Grumman said Sunday it agreed to sell its advisory services business TASC Inc. to private equity firm General Atlantic LLC and affiliates of Kohlberg Kravis Roberts & Co. for $1.65 billion in cash.
The No. 2 defense contractor says it will use the proceeds to fund a new $1.1 billion increase to its stock buyback program. At the end of the third quarter, the company had about $280 million remaining on its $2.5 billion share repurchase plan.
TASC, based in Chantilly, Va., serves intelligence, defense and civil agencies. It has about 5,000 employees and is expected to record 2009 revenue of $1.6 billion. It is part of Northrop's information systems sector.
Northrop doesn't expect the deal to affect its 2009 net income or earnings per share. The company also said that after the stock buybacks, the deal won't affect its 2010 earnings per share from continuing operations.
The transaction is expected to close by the end of the year.
Northrop has been repositioning itself to expand its electronics, information and intelligence businesses, those with products most in demand from the government.
Last month, the company reported higher-than-expected revenue growth. The company also lifted its 2009 outlook as it announced third-quarter earnings that beat analyst forecasts. Its net income fell about 4 percent to $490 million, or $1.53 per share, from $512 million, or $1.51 per share, a year earlier, reflecting the impact of pension expenses.
Print
Email
- Alternative energy's hot spot is making a comeback after some dark days in the past year.
- Athena Health is offering an electronic records and billing system to boost cash flow and simplify payments.
- The world’s two largest carbon emitters — the US and China — may have put a nail in the coffin of a global carbon reduction agreement.
- Every investor knows the connection between stocks and the dollar. But is there any method to the market's madness?
- NBA’s New Jersey Nets have yet to win a game this year. How can they get people to see them play?
- CNBC contributor David Pogue looks at a wireless speaker system designed to play music throughout your home.
Data is a real-time snapshot *Data is delayed at least 15 minutes