SAIC Releases Name of New Spin-off Company, Leidos Holdings, Inc.

The split of defense contractor SAIC into two companies early this week meant that overnight a new company appeared in San Diego, with 1,300 employees: The company is Leidos Holdings Inc. which offers services in the national security, health and energy vertical markets. John Jumper, the former chairman and CEO of SAIC, is now CEO of Leidos, which has 23,000 employees all told. The U.S. Navy is one of Leidos’ key customers.

"SAIC is being given a unique opportunity to better serve our existing customers by expanding our offerings to them and taking an enterprise approach," said SAIC Sector President Nazzic Keene. "We expect this separation transaction will also yield improved financial results for our shareholders and opportunities for our employees."

Moraco also noted, "We have transformed SAIC to better align with customers, leverage the full potential of our differentiated service offerings and expertise, and position our enterprise for enduring success. By reconstructing the company and optimizing our organizational structure, we are well positioned in an increasingly competitive global market."

SAIC saw the split as an opportunity to gain more government contracts. Last year, corporate leaders said a split would help the company avoid “organizational conflicts of interest” and the perception of such conflicts.