The private security company formerly known as "Blackwater" is being purchased by USTC Holdings, investment group led by two private equity firms. The purchase includes the company's training facility in North Carolina.
Owner and founder Erik Prince, a former Navy SEAL, will no longer have an equity stake or management role in the company, now called "Xe."
Blackwater gained notoriety for its work in Iraq and Afghanistan, including a 2007 shooting in Baghdad that led to federal charges against several of the company's employees.
The AP reports that some on Capitol Hill would prefer to stop doing business with Xe:
In March, Senate Armed Services Committee Chairman Carl Levin suggested the Pentagon should consider banning Xe from a $1 billion deal to train Afghan police. The Michigan Democrat said he thought the company's involvement was hindering the U.S. mission in Afghanistan.