Leidos and Analogic Form Security Tech Joint Venture

Defense contractor LEIDOS HOLDINGS INC announced on Wednesday a plan to spin off its security and industrial automation segments to merge them with Analogic Corporation. Based in the United States, the transaction will create a new joint venture focused on advanced imaging and detection technologies.

Analogic Corporation, which is currently owned by the investment firm Altaris, specializes in magnetic resonance imaging and airport baggage screening systems. Under the terms of the agreement, Leidos will contribute its security enterprise solutions, ports and borders, and industrial automation units. These businesses represent approximately 1,500 employees and are projected to generate $625 million in revenue for the 2026 fiscal year.

The consolidation is designed to accelerate the development of security products, specifically focusing on the transition toward AI-native and 3D imaging solutions. Upon the completion of the deal, the Reston, Virginia-based Leidos will maintain a 41.5% stake in the new entity. The venture will operate as a privately held company under the Analogic brand name.

Current chief executive officer Tom Ripp will lead the combined organization.

This transaction expands our product portfolio and sales channels, enabling us to support global customers across the full lifecycle of security screening.

The deal is expected to reach completion during the second half of 2026, subject to customary closing conditions.