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SAIC to complete spin-off by end of September

MCLEAN, Va. (AP) -- SAIC Inc. plans to complete its split into two different companies by the end of this month.

Under a timetable laid out Monday, the spin-off will take place Sept. 27 after the stock market closes. Science Applications International Corp. will handle information technology and other services and be based in McLean, Va. The other company, Leidos Holdings, Inc., will focus on national security, engineering and other work from its Reston, Va., headquarters.

Shareholders of record at Sept. 19 will get one share of Science Applications' stock for every seven shares of SAIC they currently hold. Just before the spin-off, Science Applications will borrow $500 million and use most of the money to pay a $295 million dividend to SAIC. After the spin-off is completed, SAIC will change its name to Leidos Holdings and execute a reverse stock split that exchanges one share of stock for every four of the old shares.

Regular stock trading in the companies is scheduled to begin Sept. 30 on the New York Stock Exchange. Science Applications' ticker symbol will be "SAIC" and Leidos' ticker symbol will be "LDOS."

A cash dividend of 32 cents per share will be payable by Leidos on Oct. 30 to stockholders of record at Oct. 15. The company expects that, after the spinoff, Science Applications will declare a quarterly cash dividend of 28 cents per share. Together, those dividend payments will equal SAIC's prior quarterly dividend rate of 12 cents per share, before any reverse splits.

SAIC's stock gained 7 cents Monday to close at $14.44.