L-3 Communications spinoff Engility moving to Chantilly brings Engility from Alexandria to Chantilly

Engility Holdings, a newly created government services spinoff of L-3 Communications, will relocate from Alexandria to Chantilly after receiving $350,000 from a Virginia state economic development fund.

Engility provides systems engineering, training and other services to the Defense Department and other government agencies. L-3, based in New York, announced that it would spin the company off in July 2011 in order to focus on high-tech sectors.

L-3 develops communications and intelligence equipment, including a broad range of electronic systems. Engilty’s services niche, however, has increasingly become a lower-margin business where price wins a contract.

Michael T. Strianese, L-3’s chairman, president and chief executive, said in announcing the new business last summer that separating the unit would remove drag from L-3’s growth rate and margins. L-3 employs 61,000 employees worldwide and reported 2011 net sales of $15.2 billion.

Engility will relocate to Chantilly space currently occupied by L-3 with the aid of a $350,000 grant from the Virginia Economic Development Partnership, a state economic development fund.

Virginia Gov. Robert F. McDonnell (R) announced the deal April 26. Engility has about 9,200 employees worldwide and reported $2.2 billion in 2011 sales. In the Chantilly area, the newly stand-alone company is expected to invest $6.5 million in its new headquarters and grow from 300 to 350 employees.

McDonnell said in a statement that he met with L-3 officials in Canada and New York about the deal and that the state competed with Maryland to land Engility. “L-3 Communications already has a strong presence in Virginia that Engility Corp. will maintain and continue to build on,” he said.

Tony Smeraglinolo, L-3 executive vice president, will become Engility’s chief executive. He previously served as president of the L-3 Services Group’s Intelligence Solutions Division.

“We are very appreciative of Gov. McDonnell, the commonwealth and Fairfax County for this strong show of support,” Smeraglinolo said in a statement. “Our existing relationship with Virginia provides a solid foundation from which to launch our exciting future and enables us to fulfill our commitment to support our customers’ missions.”

Jonathan O'Connell has covered land use and development in the Washington area for more than five years.
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