Jacobs to spin-off government services unit to streamline operations

May 9 (Reuters) - Engineering and consulting firm Jacobs Solutions Inc said on Tuesday it will spin-off its government services unit in a move to streamline its operations and boost margins.

Jacobs joins a raft of U.S. manufacturing companies, including General Electric Co, who have moved to cut costs and simplify businesses over the past two years.

Shares of the company were up 3.4% at $121.3 in morning trade after the Dallas, Texas-based company said it will complete the separation in the second half of fiscal year 2024.

The Critical Mission Solutions (CMS) business which provides services such as consulting and data analytics to U.S. and foreign governments will be spun-off to Jacobs' shareholders, details of which would be made public at a later date, the company said.

CMS president Steve Arnette will continue to lead the business after the spin-off is completed.

Jacobs Solutions said Centerview Partners LLC and Perella Weinberg Partners LP are serving as financial advisers to the company, while Wachtell, Lipton, Rosen & Katz is serving as legal adviser.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Krishna Chandra Eluri)