BETHESDA, Md. (AP) – Lockheed Martin is separating its information systems and global solutions unit, combining it with the engineering company Leidos so that it can focus on its remaining aerospace and defense business.
The division has about $5 billion in sales and more than 16,000 employees globally.
Its shares dropped more than 3 percent in morning trading Tuesday.
Lockheed Martin Corp. will receive a special one-time payment of $1.8 billion. The Bethesda, Maryland-based company’s shareholders will receive approximately 77 million Leidos shares with an estimated value of $3.2 billion.
Existing shareholders of Leidos Holdings Inc. will continue to hold the remaining outstanding shares.