Lockheed to separate IT services unit and merge it with Leidos

Bethesda

LOCKHEED Martin has agreed to separate its Information Systems and Global Solutions division and combine it with Leidos Holdings in a US$5 billion deal, the Bethesda-based company announced on Tuesday.

The long-anticipated transaction comes as Lockheed, the nation's biggest defence contractor, is focusing more on building hardware, such as the F-35 Joint Strike Fighter, and moving away from government services. Last year, for instance, Lockheed acquired Sikorsky, the helicopter manufacturer.