"Lockheed Martin has entered into a definitive agreement to separate and combine its Information Systems and Global Solutions… business segment with Leidos Holdings… unlocking $5 billion in estimated enterprise value for Lockheed Martin stockholders," the release stated on Tuesday.
In the giant deal, Lockheed Martin will receive a one-time special cash payment of $1.8 billion and the company’s stockholders will receive a 50.5 percent equity in Leidos Holding, worth approximately $3.2 billion, the release noted.
"[The] transaction is highly complementary to strategic objectives of both corporations with substantial synergies and potential to enhance value for both sets of stockholders," the Lockheed Martin pointed out in the release.
The agreement is still subject to regulatory approval by the US government and to approval by Leidos shareholders. It is expected to be fully implemented by the third or fourth quarter of 2016, the release added.
