Leidos Completes Analogic Joint Venture, Retaining 41.5% Stake
Leidos completed its joint venture with Altaris, retaining a 41.5% stake. The venture, operating as Analogic, will focus on security screening. Leidos contributed businesses with $625M projected 2026 revenue. Leidos Q2 revenue rose 7% to $4.56B, but net income fell 9% to $356M, including $29M in transaction costs.
How this was made
The 30-second read
Why it matters
The joint venture creates a new privately held entity under the Analogic brand, consolidating Leidos' screening capabilities.
Market read
Leidos' JV completion is a material corporate action that may affect its short‑term earnings perception while positioning it for longer‑term growth in the security sector.
What to watch
Potential synergies from the $270M CBP contract and the ability to cross‑sell Leidos' broader security solutions.
Background
Leidos' NorthStar 2030 strategy emphasizes growth in core security and automation businesses.
Market effects
Strengthens the defense and security screening sector with a larger player entering the market.
May boost related suppliers in the U.S. Northeast and New England region.
Limited to security screening and border protection markets worldwide.
Counterpoint
The venture could accelerate revenue growth faster than anticipated, offering upside if integration succeeds.
Key entities
- CompanyLeidos
U.S. defense and aerospace contractor completing the joint venture.
- CompanyAnalogic
Privately held security screening firm now partially owned by Leidos.
