# Leidos trades control of its security screening business for a 41.5% Analogic stake Altaris affiliates hold 58.5% of the Analogic joint venture and appoint a majority of its board. Certain Leidos liquidity demand exit rights begin only after seven years. Published 2026-10-05 by TGOs. Canonical: https://tgos.io/news/2026/10/05/leidos-combines-security-enterprise-solutions-with-altariss-analogic-keeping/ Leidos on Oct. 5 closed the combination of its Security Enterprise Solutions (SES) and Industrial Automation businesses with Analogic, a portfolio company of investment firm Altaris[1]. The venture operates under the Analogic brand and focuses on security screening at airports, borders and critical infrastructure[2]. Leidos contributed its businesses in exchange for 41.5% of the venture's equity[1]. Altaris affiliates put in part of Analogic's parent for 58.5% and sold the rest of that parent to the venture for cash the venture obtained from new debt financing[1]. Altaris holds the controlling interest; Leidos's 41.5% is non-controlling[1][4]. Leidos's say now runs through the minority of board seats it initially designates and customary minority protective rights over certain material proposed actions[1]. The exit terms include Altaris's drag-along rights and Leidos's tag-along rights[1]. Certain Leidos liquidity demand exit rights start only after the seventh anniversary of closing. All of these terms are subject to timing, procedural and other limits in the joint venture agreement[1]. By revenue, the contributed business is a small piece of Leidos. In its April announcement of the deal, Leidos said it would contribute about 1,500 employees representing $625 million in projected 2026 revenue[3]. That revenue is about 3.6% of the $17.2 billion Leidos reported for its last fiscal year[2]. The 10-Q says the divestiture is not a material strategic shift, so the business will not be presented as a discontinued operation[4]. Chief Executive Officer Tom Bell said the launch "sharpens our focus on the growth engines driving our NorthStar 2030 strategy"[2]. ## Why it matters Before any exit, cash from the stake depends on an Altaris-majority board, which decides when the venture distributes its available cash, at least once a year[1]. Leidos's first financial statements covering a period that includes Oct. 5 will show the business deconsolidated and the 41.5% carried as an equity method investment[1][4]. *Clarification, October 7, 2026:* The headline changed from “Leidos combines Security Enterprise Solutions with Altaris's Analogic, keeping a 41.5% minority stake” to “Leidos trades control of its security screening business for a 41.5% Analogic stake”. The summary now reads: “Altaris affiliates hold 58.5% of the Analogic joint venture and appoint a majority of its board. Certain Leidos liquidity demand exit rights begin only after seven years.” Revision notice clarified October 11, 2026. ## Sources 1. Leidos Holdings, Form 8-K, Oct. 5, 2026 2. Leidos press release, Exhibit 99.1, Oct. 5, 2026 3. Leidos press release, Exhibit 99.1, April 15, 2026 4. Leidos Holdings, Form 10-Q for the quarter ended July 3, 2026