As Leidos Doubles In Size, CEO Roger Krone Sees A World Of Opportunity In High-End Services (From Forbes)

Leidos Holdings, Inc. has surmounted the latest regulatory hurdle on its path to acquiring the Information Systems & Global Solutions business of Lockheed Martin.  Assuming that transaction is completed later this year as planned, Leidos will become a $10 billion solutions enterprise with a business mix split evenly between defense/intelligence customers and civil/commercial customers.  The unifying theme in all of its activities is a focus on high-tech, high-end services for customer who are either government agencies or in industries regulated by government agencies.  CEO Roger A. Krone doesn’t plan to change that, but he does expect the Lockheed acquisition to expand his customer base, diversify his markets, and give Leidos cost leadership in the business areas it addresses.  With 34,000 employees, the combined operation will be able to pursue just about any opportunity it considers attractive, but Krone stresses he is more interested in generating cash and earnings on a sustainable basis that just becoming the biggest player in the business.  I have written a commentary for Forbes here.