Helping BAE Systems Add Value in a Seamless Business Divestment
- Complete a divestment quickly with no detrimental effect on the day-to-day running of either business.
- Comprehensive service throughout the crucial pre and post-implementation phases of the divestment.
- Commercial operations and nd highly sensitive defence sector activities ran securely side-by-side on the same IT system.
- System was resized and split off for a new company.
When it decided to sell its Inertial Products division, BAE Systems asked CSC to separate the corporate shared IT systems so an independent operation could be set up under the ownership of JF Lehman & Co.
Quick divestment needed
The key challenges when BAE Systems decided to sell Inertial Products because it was no longer core to its future business direction, were to:
- Complete the divestment quickly with no detrimental effect on the day-to-day running of either business
- Safeguard highly sensitive data and operations in the defence side of the business
- Create a standalone IT system suitable to enable effective transition to the new parent company.
Drawing on its previous experience of IT separations conducted by CSC, BAE Systems had no hesitation calling in CSC’s dedicated Mergers, Acquisitions and Divestment team.
'Business as usual'
CSC provided a comprehensive service throughout the crucial pre and post-implementation phases of the divestment. This was based on its extensive experience completing over 200 merger, acquisition and divestment (MA&D) projects, including over 65 acquisitions of its own.
This level of expertise meant CSC guided the client smoothly through the process, highlighting issues and providing solutions to eliminate many of these before they arose, as well as mitigating those that did occur.
CSC maintained business as usual trading at all times, which helped the new owner generate a 160% return on its initial investment.
The new owners were able to:
- Develop the business from a stable platform, without the constraints of sharing IT systems with its former parent
- Use the flexibility of the new IT system to operate simultaneously in commercial sectors as well as the more restrictive defence contract environment
- Rely on the new IT system to run cost effectively and facilitate greater business efficiencies.