Lockheed Martin has agreed to a $5 billion deal that will separate and merge its Information Systems & Global Solutions segment with Leidos Holdings, Inc. , also a defense company, Lockheed announced Tuesday. Under the terms of the deal, Lockheed will receive a one-time cash payment of $1.8 billion and Lockheed Martin stockholders will receive 50.5% equity in Leidos, worth about $3.2 billion, all of which is still subject to regulatory approval."This strategic transaction is an important milestone in the portfolio reshaping strategy we announced in July 2015 and allows us to focus on our core business in aerospace and defense," said Marillyn Hewson, CEO of Lockheed Martin, in the press release. The transaction is expected to close in the third or fourth quarter of 2016 and is also subject to approval by Leidos stockholders. Shares of Lockheed Martin were down less than 1% in premarket trade Tuesday.
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