Engility sells international development services business

Engility late last week sold its international development services business to the Research Triangle Institute for $24 million, the company said in a new Securities and Exchange Commission filing.

"The sale was the result of the Company's strategic review of its business and determination that the [U.S. Agency for International Development] portion of the Company's international business no longer closely aligned with the Company's future strategic direction, which is to focus on highly technical services, including high-performance computing, solutions provisioning and enterprise modernization," the filing adds, noting that Engility expected its USAID business to generate about $70 million in 2017 sales.

Engility will use the sale's proceeds to pay down existing debt, according to the document.

"In connection with the sale of IRG, and based on the final selling price of the business being less than carrying value of the assets as of December 31, 2016, the Company currently anticipates it will record a non-cash impairment charge for the three months ended December 31, 2016 estimated to be in the range of $20 million to $30 million (pre-tax)," Engility's SEC filing says. "The Company expects to report the final impact of this non-cash goodwill impairment charge when it releases its fourth quarter 2016 financial results on March 9, 2017."