Leidos Holdings Inc. (NYSE: LDOS) announced a joint venture agreement with investment firm Altaris to combine Leidos' Security Enterprise Solutions business with Altaris-owned Analogic Corp., creating a U.S.-based security screening company.

The transaction involves Leidos contributing approximately 1,500 employees and $625 million in projected 2026 revenue to the new joint venture. The combined entity will operate under the Analogic brand, with Leidos maintaining a minority ownership stake.

The joint venture brings together detection technologies, manufacturing capabilities and engineering expertise focused on security screening for airports, borders and critical infrastructure. The companies stated the combination aims to accelerate development of artificial intelligence and 3D imaging solutions for security applications.

"Our unified joint venture represents a focused step to strengthen U.S. capabilities in security detection at a time when global travel and trade continue to grow," said Leidos Chief Executive Officer Tom Bell.

Analogic Chief Executive Officer Tom Ripp said the combination creates "a stronger, more capable company with the expertise and breadth of solutions to better meet evolving customer needs worldwide."

The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions. Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026.

PJT Partners served as financial advisor to Leidos, with Fried, Frank, Harris, Shriver & Jacobson LLP and DLA Piper providing legal counsel. Analogic was advised by Kirkland & Ellis LLP and Hinckley Allen & Snyder LLP.

The information is based on a press release statement from Leidos.