8:07AM SAIC announces names for planned new companies (SAI) 11.41 : Co announced the names for the businesses expected to be created in the latter half of this fiscal year following its planned separation into two independent, publicly traded companies, as announced Aug. 30. technical services and enterprise Information Technology (IT) business will continue the SAIC name, and the national security, health and engineering business will be named 'Leidos' -- a coined word, clipped from 'kaleidoscope.'
SAIC is history The surviving entity is Leidos. Once growth company: Leidos. One value company: SAIC. To get the value out of SAIC (let's assume they get much of that choice property in Tysons), the company gets bought, strip out redundant and ineffective management, transition out the bottom performing employees.... and that happens after SAIC is bought by BAE, BAH, TASC or LMT. It would be more valuable to companies with a large funded pension liability, since SAIC doesn't have those issues and can be useful in paying off the liability. Also, the company devoid of deadwood management can its overhead over a larger head count. Leidos has a higher PE. SAIC goes to the chop-shop. Shareholders win.