MCLEAN, Va., April 1, 2011 /PRNewswire/ -- Science Applications International Corporation (SAIC) (NYSE: SAI) today announced it has reached an agreement to sell to Wipro Ltd. (NYSE: WIT) certain SAIC operations focused on providing specialized IT services to oil and gas companies. The operations being sold comprise SAIC's U.S. oil and gas IT services business along with subsidiaries located in the United Kingdom (SAIC Limited), France (Science Applications International, Europe S.A.R.L.), India (SAIC India Private Ltd) and the Middle East (SAIC Gulf LLC), all of which are predominantly focused on the oil and gas market. These operations employ approximately 1,450 persons.
"The sale of these operations will enable SAIC to better focus on our strategic growth areas, including market segments in the energy sector, such as smart grid, renewable energy implementation, and energy efficiency, where we have successfully built our business through organic growth and acquisitions," said Walt Havenstein, SAIC chief executive officer. "To grow our oil and gas IT services business would have required investments in areas outside our strategic focus, including increasing our off-shore capabilities. Wipro is ideally suited to maximize the value of this profitable business. This transaction will provide the best result for the employees and customers of these operations."
Joe Craver, president of SAIC's Health, Energy, and Civil Solutions Group, said, "We've consolidated all commercial utility information and technology capabilities together with our capabilities in energy engineering and utility consulting to comprehensively address the increasing technical, regulatory and business challenges associated with improving the security, reliability and efficiency of our nation's energy delivery systems."
Completion of the sale is subject to customary closing conditions and regulatory approvals.
SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The company's approximately 43,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of $11.1 billion for its fiscal year ended January 31, 2011. For more information, visit www.saic.com. SAIC: From Science to Solutions®
Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K for the period ended January 31, 2011, and other such filings that SAIC makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.