Calian Group (CGY.TO) said it will sell its commercial IT business in the US to California-headquartered Trace3.
The deal includes C$43 million in cash and Trace3's assumption of C$17 million in liabilities, Calian said Wednesday.
Calian said the sale reflects its strategy to focus on the defense, space and other essential industries in the US, UK and Europe. On Monday, Calian completed its acquisition of Galaxy Broadband Communications, a satellite and remote connectivity firm.
Calian said it plans to use the proceeds from Wednesday's announcement to fund acquisitions and organic growth initiatives. The transaction is expected to close in the company's fiscal fourth quarter.