Bethesda, Maryland: 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.
Reston, Virginia-based Leidos is expected to pay its shareholders a special dividend of about $1 billion. The deal still needs approval from Leidos shareholders. It is expected to close in the second half of the year.
Shares of Lockheed Martin dropped $6.90, or 3.3 per cent, to $204.11 in morning trading. Its shares are down have edged up 4 per cent over the past year.
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.
Existing shareholders of Leidos Holdings Inc will continue to hold the remaining outstanding shares.
Advertisement
Shares of Lockheed Martin dropped $6.90, or 3.3 per cent, to $204.11 in morning trading. Its shares are down have edged up 4 per cent over the past year.
Advertisement
COMMENTS
Advertisement
"PM Modi's Visit To Take Relationship To Next Level": US Firm Lockheed Martin China Sanctions Lockheed Martin, Raytheon Over Arms Sales To Taiwan Watch: The Moment A Fighter Jet Of US Armed Forces Crashed On Runway World's Largest Isolated Tribe Makes Rare Appearance In New Footage 1 Passenger Dies As Chandigarh-Dibrugarh Express Derails In UP Why BJP Lost Lok Sabha Polls In Uttar Pradesh - 6 Reasons In Party Report Man Insulted By Employer's Son Takes Revenge, Robs Him Off Rs 3.5 Crore Norton Motorcycles To Be Launched In India; Six Motorcycles Announced For Global Markets 2 Of World's 5 Largest Coal Mines Now In India: Report Track Latest News Live on NDTV.com and get news updates from India and around the world.