Amentum Holdings, Inc. (NYSE:AMTM) shares gained on Wednesday. The company disclosed that it reached a definitive deal to sell its Rapid Solutions hardware and product business to Lockheed Martin Corporation (NYSE:LMT) for a cash transaction valued at $360 million.

The company’s Rapid Solutions business specializes in ISR, advanced communications, and tactical systems aimed at critical national security challenges.

As part of the deal, roughly 230 Rapid Solutions employees will move to Lockheed Martin.

Also Read: Amentum Faces Growth Slump As Government Cuts Spending, Analyst Expects Merger To Boost Margins

The transaction is projected to close in the second half of 2025 and is expected to result in around $325 million in after-tax proceeds for Amentum.

Adam Harrison, Senior Vice President of Strategy and Corporate Development, said, “The divestiture of Rapid Solutions sharpens Amentum’s focus on mission critical services and reinforces our position as a global pure-play provider of advanced engineering and technology-enabled solutions.” 

As of March 31, Lockheed Martin had cash and cash equivalent of $1.80 billion.

Amentum plans to release results for the second quarter of the FY25 on May 7, 2025.

Last week, Amentum won a $247.6 million contract from the U.S. Department of Defense (DOD) Air Combat Command (ACC), Acquisition Management and Integration Center (AMIC), Counternarcotics and .

Investors can gain exposure to the stock via Invesco Exchange-Traded Fund Trust II Invesco S&P SmallCap 600 Revenue ETF (NYSE:RWJ).

Price Action: AMTM shares closed higher by 3.13% to $19.75 on Wednesday.

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