Leidos to Form Analogic Joint Venture With Altaris
Leidos will contribute its Security Enterprise Solutions unit and about 1,500 employees to a privately held Analogic venture that it said will sharpen its NorthStar 2030 growth focus.
Leidos (LDOS) and investment firm Altaris entered into a joint venture that combines Leidos’ Security Enterprise Solutions business with Altaris-owned Analogic, creating a privately held company that will operate under the Analogic brand.
The venture is focused on security screening for airports, borders and critical infrastructure. Leidos said the partnership brings together advanced security detection systems and imaging technology, and that consolidating the two businesses aims to improve product innovation and unlock efficiencies in research and development, manufacturing and operations of next-generation screening technologies. It also aims to support a faster transition to AI-native and 3D imaging solutions.
Leidos will contribute approximately 1,500 employees representing $625 million in projected 2026 revenue to the new joint venture and will retain significant minority ownership. The privately held company is expected to focus on growth in the global detection and imaging market, freeing Leidos to continue investing in core growth areas identified in its NorthStar 2030 strategy.
“This JV creates an American innovator with the technology, talent and scale to address rapidly evolving global security screening needs,” said Leidos Chief Executive Officer Tom Bell.
Bell also said the unified joint venture represents a focused step to strengthen U.S. capabilities in security detection as global travel and trade continue to grow, and that combining SES with Analogic will position the new company to promote investment in innovation, deliver more efficient solutions for the U.S. government and ensure that the world’s advanced security technology is designed and engineered from the United States.
Analogic Chief Executive Officer Tom Ripp said combining the two organizations is creating a stronger company with the expertise and breadth of solutions to meet evolving customer needs worldwide. Analogic, headquartered in Salem, N.H., designs, develops, manufactures and supports imaging, detection and power technology solutions for aviation security, healthcare and other high-end industrial markets. Altaris is an investment firm with an exclusive focus on acquiring and building companies in the healthcare industry.
The transaction is expected to close in the second half of 2026, subject to customary closing conditions, including receipt of regulatory approvals. Leidos retained PJT Partners as financial advisor, Fried, Frank, Harris, Shriver & Jacobson LLP and DLA Piper as legal advisors, and KPMG as accounting advisor. Kirkland & Ellis LLP and Hinckley Allen & Snyder LLP acted as legal advisors to Analogic, along with Ernst & Young LLP as accounting advisor.