Lockheed Martin will merge its IT and government services subsidiary with Leidos in a complex and tax-advantageous deal, creating the largest government services provider in the US with a $10 billion annual revenue base, the companies’ executives said Tuesday.
Bethesda, Maryland-based Lockheed’s government IT wing, with more than $5 billion in sales and 16,000 employees, is being sold to Reston, Virginia-based engineering giant Leidos for cash and stock. Leidos itself was spun off from Science Applications International Corp in 2013.
The deal, which is subject to regulatory approval, is expected to close in the third or fourth quarter of 2016.
“By bringing together our IT business with Leidos’ already strong customer base, we will create a competitor with the scale, portfolio and expertise to deliver unparalleled solutions and incredible value in a highly competitive contractor environment,” Lockheed Martin CEO Marillyn Hewson said in a investor call Tuesday.
On the call, other Lockheed and Leidos executives said they expect the company to pull in $10 billion in revenue, nearly double that of its closest contracting competitors, Booz Allen Hamilton and CSRA, Inc.
Full content: Military Embedded Systems
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation
Apr 23, 2024 by
CPI
FTC Moves to Ban Non-Compete Agreements, Aiming to Boost Labor Mobility
Apr 23, 2024 by
CPI
Federal Judge Nods at $418M Deal in Real Estate Antitrust Suit
Apr 23, 2024 by
CPI
Mexican Watchdog Probes Amazon and Mercado Libre Over Loyalty Bundles
Apr 23, 2024 by
CPI
Competition Commission of India to Probe AI Landscape for Competition
Apr 23, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI