BT Group has completed the sale of its U.S. government contracting subsidiary, BT Federal Inc., to 22nd Century Technologies, marking another step in BT’s strategy to simplify its portfolio and sharpen its focus on the UK market and core international capabilities.

Following the transaction, BT Federal will operate as 22nd Century Networks, a wholly owned subsidiary of 22nd Century Technologies. The acquisition expands 22nd Century Technologies’ managed network services footprint across all 50 U.S. states and strengthens its ability to deliver secure, end-to-end network solutions for federal agencies.

For BT, the divestment supports its ongoing transformation and allows BT International, now operating as a standalone unit, to concentrate on becoming a global leader in secure multi-cloud connectivity for multinational customers. BT confirmed it will maintain a strong U.S. presence through its international operations, with offices and employees in New York, Dallas and Reston. The transaction has been cleared by the U.S. Federal Communications Commission, and both companies stated that operations will continue without immediate disruption for employees or customers.