Amentum (AMTM, Financial) has agreed to divest its hardware and product arm, Rapid Solutions, to Lockheed Martin (LMT) in a deal valued at $360 million in cash. This strategic move is designed to reposition Amentum as a leader in technology-focused solutions while also aiding in reducing its existing debt.
The business segment being sold, which produces intelligence, surveillance and reconnaissance (ISR) systems, along with advanced communication and tactical systems, contributes roughly 1% to Amentum's annual revenue and adjusted EBITDA. Nonetheless, the sale aligns with Amentum's long-term strategic goals.
Following regulatory green lights and satisfaction of standard closing conditions, the transaction is anticipated to be finalized in the latter half of 2025. Upon completion, around 230 employees from Rapid Solutions will become part of the Lockheed Martin team.
Financially, Amentum expects to receive approximately $325 million in after-tax proceeds from this deal, further supporting its debt reduction targets.
