Ciber Inc. (NYSE: CBR) struck a deal to sell its federal division to CRGT Inc. for $40 million in cash, according to a filing with the U.S. Securities and Exchange Commission. CRGT is a Reston, Va.-based provider of information technology services to the federal government. The division provides services primarily to the federal government with a large user being the Department of Defense, and the division's services do include staffing.

The deal is expected to be close in 90 days, and the purchase price is subject to an adjustment based on the final calculation of working capital after the sale closes.

“Selling this division is a logical step for us as we continue to narrow our focus, streamline our business mix and concentrate our resources on our core offerings and market segments,” said Ciber CEO Dave Peterschmidt. “The divestiture of our federal business reduces the complexity of Ciber and creates an opportunity for us to use net cash proceeds of approximately $35 million to invest to strengthen our offerings or to reduce our outstanding debt balance.”

Ciber’s federal division posted revenue of $117.5 million in 2010, according to the company’s 10-K filing. The federal division serves the U.S. government with IT services and has more than 1,000 employees in 45 states and six countries.

Ciber, based in Greenwood Village, Colo., ranks No. 17 on Staffing Industry Analysts’ 2011 list of largest IT staffing firms.

The buyer, CRGT, is owned by private equity firm Veritas Capital.