Calian Group (CGY) jumped 8% today on news that it entered into an agreement with Plantro (activist) that should accelerate a board refresh and non-core divestitures. The stock has lagged its defense peers…

… despite having huge exposure to both military spend…

… and Canada - two factors that make the company uniquely positioned for the coming wave of defense investment here at home.

The reason for that underperformance is its IT segment, which has been faced with negative growth and margin compression in recent quarters…

… and could be on the table. At ~30% of revenue and ~20% of EBITDA, carving it out would reduce earnings volatility and simplify the story - driving a re-rate if they can get a fair price… let’s see.