BAE says it will retain manpower and services businesses

BAE Systems said today that following a strategic review, the contractor will retain its U.S.-based manpower and services businesses within its intelligence and security sector.

In April, the company announced it had hired external advisers to assess the businesses, which it said had "generated external interest and a number of inquiries."

Yesterday, Reuters reported BAE was in advanced talks with Veritas Capital Management about selling the businesses.

But BAE said today the "review has concluded that retaining the businesses within BAE Systems, Inc. delivers greater value. The business continues its good performance and order intake."

In an email to Inside Defense, BAE spokesman Brian Roehrkasse said "there was never any certainty that a transaction would occur."

He noted the business recently won a single-award contract worth up to more than $1 billion over 10 years for government information technology services and a recompete contract for five more years of air traffic control and landing systems work for the Marine Corps.

The company added that the product-focused geospatial intelligence business within the intelligence and security sector is still set to move to BAE's electronic systems sector on Jan. 1.