KEYW Holding Corp. announced Thursday that it is close to the sale of its commercial cybersecurity unit as it renews its focus on its core government business serving the intelligence community.
The Hanover-based company, which is hosting its investor day, said it has executed a nonbinding letter of intent for the sale of Hexis, its commercial unit. The sale will enable the company to focus solely on its cybersecurity operations for the intelligence community.
"The new plan announced today transforms key elements of our legacy business model and aims to usher in a new era of growth and profitability at KEYW," chief executive Bill Weber said in a statement. "I believe KEYW has the best technologies and technologists in the government solutions sector. It's now time to better leverage these capabilities, as well as our new enterprise-wide business development strategy, to get KEYW back into growth mode."
The company, which has been in transition since its founder and CEO Len Moodispaw died in June, said it expects revenue of $285 million to $305 million this year from its government business. It set a goal of increasing its revenue to $400 million to $500 million in the next few years
KEYW said it expects to announce updates on the Hexis sale in coming weeks after the potential buyer completes due diligence and terms are finalized. It sold its systems engineering and technical assistance business to Quantech Services Inc. last month for $12 million.
KEYW shares rose 3 cents in trading Thursday, closing at $6.78.