Leidos Finalized Security Screening Joint Venture

The company finalized a deal with Altaris to form a new entity operating under the Analogic brand.

Updated on Oct. 5, 2026 in Corporate Finance

Isometric editorial illustration of a heavy industrial security scanner tunnel with metallic rollers, evoking corporate consolidation. — Leidos has finalized a joint venture with Altaris to consolidate its security screening and industrial automation businesses under the Analogic brand. AI Illustration. Upload story photo >

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Leidos has completed the formation of a security screening joint venture with affiliates of Altaris. The new company is registered as Nickel JV Ultimate Parent, LLC and will operate under the Analogic name.

Why it matters

The deal combines Leidos' Security Enterprise Solutions and Industrial Automation business with Analogic Corporation to reshape the firm's portfolio. Analysts are now waiting for the next quarterly report to determine how the stake will be accounted for.

Leidos now holds a 41.5% stake in the joint venture, while Altaris affiliates control the remaining 58.5%. The deal unites significant assets from the Leidos Security Enterprise Solutions and Industrial Automation divisions.

The players

Leidos

Leidos is a technology, engineering, and science solutions company that provides services to the defense, intelligence, civil, and health markets.

Altaris

Altaris is an investment firm that focuses on the healthcare sector and related industrial and technology businesses.

Analogic Corporation

Analogic Corporation is a specialized designer and manufacturer of advanced health and security imaging systems.

The details

The transaction was formalized through an Amended and Restated Limited Liability Company Agreement signed on October 5, 2026. This move merges the operations of Leidos, Inc. with Analogic Corporation to consolidate market offerings in security screening.

April 14, 2026: Leidos and Altaris signed the original contribution agreement.
August 2026: Leidos filed a 10-Q reporting second quarter financial results.
October 2, 2026: Insiders at Leidos filed Form 4 disclosures.
October 5, 2026: The joint venture deal officially closed.

Market Landscape

This joint venture represents a significant shift in Leidos' corporate structure following the benchmarks set by the company's second quarter 2026 10-Q filing. The move positions the newly formed Analogic-branded entity to compete more aggressively in the security screening sector.

Investors observed a 3.5% decline in Leidos share price on the day the deal closed. For the average stakeholder, this transition represents a change in the company's operational composition following a year-to-date share price decline of 34.1%.

The takeaway

This transaction reflects a strategic move by Leidos to offload and re-structure its security business while maintaining a significant minority equity position. Shareholders and analysts will continue to monitor how this partnership influences the company's diluted earnings per share moving forward.