April 15 (Reuters) – Defense contractor Leidos Holdings will spin off its security and industrial automation businesses and combine them with security imaging and detection company Analogic Corporation to form a new joint venture, the companies said on Wednesday.
Analogic, owned by investment firm Altaris, develops technologies for magnetic resonance imaging and airport checked-baggage screening.
Under the deal, Leidos will contribute its security enterprise solutions, ports & borders, and industrial automation businesses, representing about 1,500 employees and $625 million in projected 2026 revenue.
The consolidation aims to accelerate innovation in security products and advance the shift to AI-native and 3D imaging solutions, Leidos said.
The Reston, Virginia-based company will hold a 41.5% stake in the new venture upon closing, which will operate under the Analogic brand as a privately held company led by current chief executive officer Tom Ripp.
“This transaction expands our product portfolio and sales channels, enabling us to support global customers across the full lifecycle of security screening,” Ripp said in a separate release.
The deal is expected to close in the second half of 2026.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Tasim Zahid)
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