Falls Church-based Computer Sciences Corp. said Monday it will sell its credit services unit to consumer credit reporting agency Equifax for $1 billion in cash.
The move comes as CSC, which lost billions last year, is trying to reposition by cutting costs and rethinking its mix of work. Mike Lawrie, the company’s chief executive, has brought in new staff as part of his remaking of the technology company, which sells to both the government and private companies.
The company has said it is ahead of schedule on its effort to cut $1 billion in expenses in an 18-month period.
CSC said in Monday’s announcement it plans to use between $300 million and $400 million of the $750 million to $850 million after-tax proceeds from the sale to repurchase shares. It will devote another $300 million to $400 million to its pension plans.
CSC said its credit services unit has been an Equifax affiliate for more than 20 years and owns credit files in 15 midwestern and central U.S. states.
The deal is slated to close by the end of the year.
In October, CSC sold off its consulting and systems integration services business in Italy to Italian IT services firm Dedagroup.