Leidos and Altaris Form Analogic Joint Venture to Scale Global Security Screening

Key highlights

• Leidos contributed its Security Enterprise Solutions and Industrial Automation businesses to the new venture
• Altaris affiliates hold 58.5% ownership and maintain majority control of the board of directors
• The joint venture operates under the established Analogic brand with a focus on airport and border security
• Nickel JV Ultimate Parent, LLC serves as the official entity name for the combined organization
• Transaction was supported by new debt financing obtained by the joint venture entity

Terms of the Joint Venture

The transaction involved a multi-step restructuring where Leidos contributed subsidiaries holding its security and industrial automation assets to Nickel JV Ultimate Parent, LLC. In exchange, Leidos received a 41.5 percent equity stake. Altaris contributed a portion of Analogic Holding Company and sold the remainder to the joint venture for cash funded by new debt financing. While Leidos maintains minority investor protective rights, Altaris holds majority voting power on the board. The agreement mandates that distributions of available cash be made at least once annually, providing a structured mechanism for capital returns from the entity.

Strategic Profile: Altaris and Analogic

Headquartered in New York, Altaris is an investment firm managing over 9 billion dollars in equity capital with a specialized focus on healthcare and related technology sectors. Its portfolio company, Analogic, brings extensive expertise in advanced imaging and detection technology. Based in Salem, New Hampshire, Analogic provides imaging solutions for aviation security, ports, borders, and medical markets. By combining these capabilities with Leidos' existing industrial automation segment, the joint venture gains immediate scale in the global market for critical infrastructure protection and automated regulatory compliance solutions.

Operational Impact

• Combines complementary engineering expertise and advanced manufacturing capabilities under a single U.S.-based entity
• Enables Leidos to streamline operations and focus on its NorthStar 2030 strategy growth engines
• Targets the evolving global demand for AI-integrated security screening at international borders
• Retains Leidos' presence in the national security imaging market through its significant minority stake
• Allows for the modernization of air traffic systems and airport ecosystems via parallel Leidos initiatives

Financial Context and Market Position

Leidos reported annual revenues of approximately 17.2 billion dollars for the fiscal year ended January 2, 2026, and currently maintains a market capitalization of roughly 14.78 billion dollars. The stock is trading at a price-to-earnings ratio of 10.99x, compared to recent technical indicators showing a Relative Strength Index of 31.7. This joint venture allows Leidos to deconsolidate certain assets while maintaining exposure to the security screening market. The company continues to serve a broad range of government and commercial customers with mission-critical digital innovations across the defense and intelligence sectors.

Up 1.7% since our story on 5 Oct: $117.74 when we broke it → $119.70 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$132.83
15 Sep	$129.24
16 Sep	$129.35
17 Sep	$130.96
18 Sep	$127.69
21 Sep	$128.23
22 Sep	$123.31
23 Sep	$124.69
24 Sep	$123.35
25 Sep	$123.61
28 Sep	$122.35
29 Sep	$123.10
30 Sep	$121.83
1 Oct	$121.97
2 Oct	$117.74
5 Oct	$119.45
6 Oct	$116.69
7 Oct	$113.55
8 Oct	$119.22
9 Oct	$121.68
12 Oct	$121.60
13 Oct	$119.70

Strategic Vision

“This JV creates an American innovator with the technology, talent and scale to address rapidly evolving global security screening needs. Its launch also sharpens our focus on the growth engines driving our NorthStar 2030 strategy.”

Management commentary

“The strategic combination of these two businesses into one reinforces our commitment to the important national security missions and markets we serve.”

Leidos Holdings, Inc. · financial snapshot

Share price	$117.74
Market cap	$14.8B
Revenue (annual)	$17.2B
P/E (TTM)	11.0×
1-month price change	-15.13%
Sector	TechnologyInformation Technology Services

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.