McLean-based Science Applications International Corp. plans to use the name Leidos for the $7 billion solutions business it forms following the split of the company.
The contracting giant announced in August it would divide its company in two, forming a roughly $4 billion publicly traded company focused on government services and a roughly $7 billion publicly traded company specializing in technology for the national security, health and engineering sectors.
The smaller of the two units will retain the SAIC name, according to the company.
The split is meant to reposition the contractor, which has faltered amid shrinking revenue and profit as well as a high-profile scandal in the form of an employment timekeeping system the company managed for New York City. Two SAIC employees were charged with conspiring to defraud the city, and the company paid about $500 million to settle the case.
SAIC officials have said the split would allow both of the businesses to be better shaped for their given markets and to pursue new work that was impossible for the larger company, given potential conflicts of interest.
The name Leidos was clipped from the word kaleidoscope, which SAIC said would reflect the company’s effort to unite solutions from different angles. John Jumper, SAIC’s existing chief executive, is to head the business, along with Stu Shea, SAIC’s chief operating officer; Mark Sopp, its chief financial officer; and Vince Maffeo, SAIC’s general counsel.
Tony Moraco, who heads SAIC’s Intelligence, Surveillance and Reconnaissance group,, has been picked to head the services business.
SAIC said the split is expected to occur sometime between July of this year and January 2014. The name change requires stockholder approval.