Science Applications International Corporation (SAIC) (NYSE: SAI) announced it has reached an agreement to sell its oil and gas operations to Wipro Ltd. (NYSE: WIT) and will focus on providing IT services in the clean energy industry.
The operations being sold comprise SAIC's U.S. oil and gas IT services business along with subsidiaries located in the UK(SAIC Limited), France (Science Applications International, Europe S.A.R.L.), India (SAIC India Private Ltd) and the Middle East (SAIC Gulf LLC), all of which are predominantly focused on the oil and gas market. These operations employ approximately 1,450 people.
"The sale of these operations will enable SAIC to better focus on our strategic growth areas, including market segments in the energy sector, such as smart grid, renewable energy implementation, and energy efficiency, where we have successfully built our business through organic growth and acquisitions," said Walt Havenstein, SAIC CEO.
Last month SAIC announced a partnership with Elster (NYSE: ELT) to provide a "hosted" smart grid solution for electric, water and gas utilities.
The company also has an agreement to help market Ice Energy's energy storage technology to U.S. Federal Government agencies and the military.
