Exelis Announces Plan to Spin Off Mission Systems Business Into a New Publicly Traded Services Company, Known as Vectrus
On December 11, 2013 Exelis announced its plan to spin off part of its Information and Technical Services segment, currently known as Exelis Mission Systems, into an independent public company, which will be named Vectrus. The transaction is intended to be tax-free to Exelis and its shareholders, is expected to be completed in the late summer or early fall of 2014, and is subject to final approval of the company’s board of directors. This website will be updated regularly and is intended to be a single source for publicly disclosed information on the spin-off and the two companies that will result from it.Company Profiles
Following completion of the spin-off, Exelis will retain a portfolio of mission critical, affordable and platform agnostic products and services for managing global threats, conflicts and complexities. The business will focus future investments on strengthening its four strategic growth platforms of Critical Networks; ISR & Analytics; Electronic Warfare; and Aerostructures. These growth platforms, which have been strategically aligned with future customer requirements, are supported by the company’s most differentiated and enduring C4ISR capabilities such as global intelligence, surveillance and reconnaissance systems, networked communications, integrated electronic warfare, and engineering and professional services.
Following completion of the spin-off, Vectrus will be a new, independent company that provides infrastructure asset management, information technology and network communication services, and logistics and supply chain management. As a pure-play services provider, the new company will capitalize on more than 50 years of experience delivering service solutions to a wide range of customers. With nearly 7,000 employees currently operating in more than 100 locations in 18 countries, Vectrus is well-positioned to deliver a broad range of capabilities as an independent entity. From facilities management and full spectrum logistics support to operating and maintaining networks and communication infrastructure, the new company will leverage its reputation and decades-long track record as a leading provider of services to the U.S. government to offer a unique value proposition based on efficiency, operational excellence and cost-effectiveness.News Releases
• Exelis Services Company Spin-Off to be Named Vectrus
• December 11, 2013 Spinoff Announcement
Frequently Asked Questions• Why are we separating the Mission Systems business from Exelis?
• How will this spin-off plan affect customers? Will the current service model change?
For the future success of Exelis, our choice was to make a significant shift in the portfolio away from the mature, war-related services offerings represented in our Mission Systems business to concentrate more on the emerging customer needs across the C4ISR and informational domain. With that in mind, we have chosen to focus investment, business development and organic and inorganic growth around four Strategic Growth Platforms (SGPs) – Critical Networks, ISR & Analytics, Electronic Warfare and Aerostructures. The transaction will also benefit Vectrus. As an independent government and military services company, the post-spin Mission Systems business will be better able to leverage the global presence, processes, relationships and people that have made it such a well-performing part of the Exelis portfolio. The transaction will create conditions favorable for Vectrus to capitalize on new opportunities for growth. Both companies are expected to have leading market positions, highly skilled employees and tremendous value-generating potential for shareholders, customers and employees.
By and large, the spin-off process will have no immediate effect on how we do business with our customers. We are committed to a seamless spin-off and will continue to keep our customers informed of our progress throughout this process. As part of today’s initial announcement, we sent information to each of our customers and their program staffs informing them of this great news and assuring them that we will remain the provider they have come to know, delivering the results they have come to expect. Until the spin-off, it will be business as usual at Exelis and customers’ day-to-day contacts will not change as a result of this announcement.
• Will Vectrus continue to be headquartered in Colorado Springs?
Yes, Vectrus headquarters will be located in Colorado Springs, Colo.
• How long will it take to complete the spin-off process?
We expect to finalize and execute the spin-off in the late summer or early fall of 2014.
• How will Vectrus establish brand identity and equity in the marketplace?
We are confident that with continued hard work and dedication, Mission Systems will successfully navigate the challenges of establishing a new brand and follow-on equity in the marketplace as a new stand-alone company. We are no strangers to change, and we have a very successful history of transformation, including completing a similar spin-off in 2011 – we’ve done it successfully in the past and will do it again now. Establishing a new brand requires discipline and cooperation across the new company, especially in the initial phases of the spin-off.
• What is the meaning behind the name, "Vectrus?"
Vectrus is a blended name derived from the words Vector and Trust. Vector represents strong forward direction, while Trust represents the essence of the new company’s commitment to its customers.
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