SAIC scheduled to separate into two companies

Published September 28, 2013 by Robert Powell, III

The separation of Tysons Corner-based SAIC Inc. into two companies is scheduled to be completed on Friday.

The national security, health and engineering solutions businesses will be renamed Leidos Holdings Inc., based in Reston, while the government technical services and enterprise information technology services businesses will be spun off as Science Applications International Corp. Its headquarters will remain in Tysons Corner.

According to a plan approved by SAIC’s board of directors earlier this month, all shareholders of record as of Sept. 19 will receive one share of common stock of Science Applications for every seven shares of common stock of SAIC held as of the record date.

The board also approved a one-for-four reverse stock split of Leidos shares.

On Monday, Leidos shares will begin “regular way” trading on the New York Stock Exchange under the ticker symbol LDOS. Shares of Science Applications will begin “regular way” trading on the NYSE under the ticker symbol SAIC. 

SAIC Chairman and CEO John Jumper becomes the chairman and CEO of Leidos while Tony Moraco, former president of SAIC’s Intelligence, Surveillance and Reconnaissance group, becomes CEO of Science Applications.

Science Applications is projected to have annual revenues of $4 billion, while Leidos is expected to have revenue of more than $6 billion.