Leidos Carves Out Security Unit in Joint Venture with Analogic

Why It Matters

The partnership bolsters U.S. security‑detection capabilities while freeing Leidos to invest in higher‑growth areas, and positions Analogic to capture expanding global demand for advanced imaging systems.

Key Takeaways

• Leidos transfers 1,500 staff and $625M revenue to Analogic JV.
• Altaris-backed Analogic will control 58.5% of the new joint venture.
• JV aims to accelerate AI‑native 3D imaging for airports and borders.
• Deal lets Leidos focus on NorthStar 2030 core growth areas.
• Transaction includes debt assumption and closes H2 2026 pending regulators.

Pulse Analysis

Leidos entered the security‑screening market in 2020 with a $1 billion purchase of L3Harris’s detection and automation business, building a portfolio that spans X‑ray, millimeter‑wave and automated baggage handling solutions. Over the past six years the unit has grown to generate roughly $625 million in revenue and employ 1,500 engineers, analysts and field staff. By carving out this segment, Leidos can streamline its broader portfolio and reallocate capital toward the high‑margin, software‑driven initiatives outlined in its NorthStar 2030 roadmap.

The new joint venture pairs Leidos’ proven screening technologies and industrial‑automation know‑how with Analogic’s specialty in imaging hardware and manufacturing scale. Backed by private‑equity firm Altaris, Analogic will own 58.5% of the entity and assume select debt, while Leidos retains a 41.5% stake and cedes operational control. The combined entity aims to fast‑track AI‑native, three‑dimensional imaging platforms that can detect concealed threats more accurately and at higher throughput, addressing rising security demands at airports, border crossings and critical infrastructure worldwide.

For the industry, the deal signals a consolidation trend as vendors seek to offer end‑to‑end, data‑rich security solutions rather than siloed hardware. Leidos’ exit frees it to double‑down on cloud, cyber and autonomous systems, while Analogic gains a larger addressable market and deeper R&D resources. Investors will watch how the JV’s accelerated product pipeline competes with incumbents such as Smiths Detection and Rapiscan, and whether the partnership can capture a larger share of the projected $15 billion global security‑screening market by 2030.

Deal Summary

Leidos announced a joint venture with Analogic, backed by investment firm Altaris, to spin off its Security Enterprise Solutions unit. The deal transfers 1,500 employees and $625 million in revenue, with Analogic holding 58.5% of the new entity and Leidos retaining 41.5%. The transaction, pending regulatory approval, is expected to close in the second half of 2026.