IT giant TechTeam Global Inc. has confirmed that it is going to sell its government solutions unit Jacobs Engineering Group Inc. for an amount worth $59 million, on Friday.

TechTeam's board has decided to sell off the unit and shift the focus to the commercial market. The unit employs 500 people with federal, state and local agencies.

It is planning to repay bank borrowings and raise cash position.

“The acquisition "brings new customers and capabilities to our growing government IT services business, and enhances our IT capabilities and services for our clients around the globe," Chief Executive Craig Martin said.

The transaction is likely to get completed in the third quarter. Due to a fall in the revenue, the Company suffered a loss in the last quarter.

The sales in the Government technology services unit fell by 25%. Jacobs suffered a 15% drop in its revenues.

None of the Companies possess pre-active shares. TechTeam shares closed at $5.21 on Thursday, dropping by 23%.

The Company’s Chief portfolios include systems integration, enterprise application integration, ERP implementation support, IT infrastructure support, network operations management, and call center operations.