AT&T inked a deal to sell its Government Solutions unit to systems integrator Tyto Athene for an undisclosed sum, the operator’s latest move to shed non-core assets.

The deal covers AT&T’s Department of Defence (DoD) IT professional services business and certain other government contracts: an operator representative told Mobile World Live these do not include its contract to build and run the dedicated FirstNet network for public safety officials.

However, AT&T will continue to be active in the government segment through “teaming agreements” with Tyto Athene to jointly tackle projects in the DoD IT professional services market.

AT&T Business CEO Anne Chow stated the move was aligned with “our strategy to support and serve our public sector customers”, adding it remained “firmly committed” to meeting the needs of this segment.

Tyto Athene president and COO, Chris Meilhammer added the deal would position it to benefit from the “tailwinds of US government investment in legacy IT modernisation and cybersecurity efforts”.

The transaction is expected to close by end-Q2 and will boost Tyto Athene’s employee count to around 1,200 from 232, based on information on its LinkedIn page.

AT&T last week agreed a deal with TPG Capital to spin off its video unit into a new company.