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Wednesday, December 11, 2013

U.S. arms maker Exelis to spin off services business, (NYSE: XLS)

Exelis Inc, which was spun off from ITT Corp in late 2011, on Wednesday announced it would now spin off its military and government services business, creating a new independent firm with revenues of about $1.5 billion, and focusing the remaining portfolio on higher margin sectors.In a statement, the company said the transaction would be tax-free to Exelis and its shareholders, and should be completed by the summer of 2014.Exelis Chief Executive David Melcher said the plan followed a comprehensive review of the company's businesses and had been unanimously approved by the company's board of directors.Exelis and other U.S. weapons makers are bracing themselves for leaner times given mounting pressure on U.S. military budgets.

Exelis Inc. (Exelis) is engaged in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) related products and systems and information and technical services, which the Company supplies to military, government and commercial customers in the United States and globally. Shares of XLS fell by 0.23% or $-0.04/share to $17.45. In the past year, the shares have traded as low as $10.08 and as high as $17.97. On average, 1410440 shares of XLS exchange hands on a given day and today's volume is recorded at 1781357.