LM and Leidos Successfully Closes Information Systems & Global Solutions Transaction
The merger will add IT system implementation and operation experience to Leidos portfolio, providing venues to sell services such as cybersecurity and analytics, officials say.
On January 2016 Lockheed Martin (Lockheed) announced that it has started the process to separate and combine its Information Systems & Global Solutions (IS&GS) business segment with Leidos Holdings, Inc. in a tax-efficient Reverse Morris Trust (RMT) transaction.
After 8 months LM has completed the separation: LM Information Systems & Global Solutions (IS&GS) business segment merged it with a subsidiary of Leidos Holdings, Inc.. The transaction concludes Lockheed Martin’s portfolio reshaping strategy announced last year.
The merger creates tangible value for both businesses. It will enable Lockheed Martin to reinforce its heritage in aerospace and defense and deliver more value to stockholders. As for the newly combined company, it will offer a broader and more affordable portfolio of capabilities and services to customers.
“This strategic transaction enhances our competitive posture in our core aerospace and defense markets and increases the value we deliver to our stockholders,” said Lockheed Martin Chairman, President and CEO Marillyn Hewson. “As we position our company for the future, this action will enable us to focus our business growth strategy, align our technology investments and increase the value we deliver to customers worldwide.”
“Today marks the next step in the evolution of Leidos. I’m excited about where we came from and what the future holds. I want to thank all of our employees for their hard work during this time of change. It would not have been possible without their efforts, but as we know change is constant and our journey is a marathon not a sprint,” said Roger A. Krone, Leidos’ Chairman and Chief Executive Officer.
- Lockheed Martin Corporation – view original press release
- Leidos – view original press release