AT&T offloads government services unit - Mobile World Live

AT&T offloads government services unit

03 MAR 2021

AT&T inked a deal to sell its Government Solutions unit to systems integrator Tyto Athene for an undisclosed sum, the operator’s latest move to shed non-core assets.

The deal covers AT&T’s Department of Defence (DoD) IT professional services business and certain other government contracts: an operator representative told Mobile World Live these do not include its contract to build and run the dedicated FirstNet network for public safety officials.

However, AT&T will continue to be active in the government segment through “teaming agreements” with Tyto Athene to jointly tackle projects in the DoD IT professional services market.

AT&T Business CEO Anne Chow stated the move was aligned with “our strategy to support and serve our public sector customers”, adding it remained “firmly committed” to meeting the needs of this segment.

Chris Meilhammer, Tyto Athene president and COO, added the deal would position it to benefit from the “tailwinds of US government investment in legacy IT modernisation and cybersecurity efforts”.

The transaction is expected to close by end-Q2 and will boost Tyto Athene’s employee count to around 1,200 from 232, based on information on its LinkedIn page.

AT&T last week agreed a deal with TPG Capital to spin off its video unit into a new company.

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Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

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