Global mission services provider PAE yesterday said it has agreed to acquire certain aspects of CSC’s [CSC] Applied Technology Division (ATD) for $175 million in cash, adding military and space testing and training services as a new capability to its portfolio.

The deal is expected to close this summer pending regulatory reviews. ATD had $760 million in sales and operating margins in the low to mid-single digits in FY ’13, CSC said.

CSC said it is selling the aviation maintenance, base operations and maintenance, test and training range, and space range businesses of ATD, while retaining the division’s training and simulation business. The division performs work at more than 20 client locations in the continental United States.

“The Applied Technology Division has a long and distinguished heritage of providing quality services to the U.S. Department of Defense, NASA and other government customers,” Mike Dignam, president of PAE, said in a statement. “This acquisition is in line with our strategy to expand PAE’s strong portfolio by adding companies with proven capabilities and a customer-focused workforce culture.”

The deal will also significantly increase PAE’s client base in the federal services market, including strengthening its relationship with the Navy and adding NASA and the Department of Energy as new customers. PAE has been providing base operations and maintenance, and infrastructure  services to DoD customers for years. The deal adds test and training capabilities to the company’s service offering.

For CSC, the pending transaction is its sixth divestiture in seven months, part of its strategy to focus on its core strength in next-generation technology solutions and services.

CSC acquired ATD as part of its 2003 acquisition of DynCorp International. ATD has about 5,400 employees. PAE, which is based in Northern Virginia, has about 10,000 employees in over 60 countries.

Houlihan Lokey served as CSC’s financial adviser on the deal.