Deals
Lockheed, Leidos to Create $5 Billion IT Business
- Company to merge some units with Leidos, receive $1.8 billion
- Lockheed's guidance for earnings per share misses estimates
Lockheed Unloads IT Business in $5 Billion Leidos Deal
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Lockheed Martin Corp. fell sharply before ending little changed as a planned spinoff of its information technology business and recent takeover of Sikorsky Aircraft left investors confused regarding the company’s growth prospects.
The stock pared the drop as Lockheed executives assured analysts that earnings are poised to climb after the company absorbs integration costs for Sikorsky this year. The world’s largest defense contractor also announced it will combine its information systems division with Leidos Holdings Inc. in a tax-free, $5 billion transaction.