Leidos on Thursday said it expects to close the transaction for Lockheed Martin’s Information Systems and Global Solutions (IS&GS) business on Aug. 16 and plans to pay its shareholders of record a special cash dividend.
The company said the dividend would be $13.64 per share, which will amount to about a $1 billion payment, and is conditioned on the transaction for IS&GS closing. Leidos said the dividend will be paid to stockholders on or about Aug. 22 to Leidos shareholders of record as of Aug. 15.
The dividend payment will be funded with cash on hand and borrowings under a new term loan and revolving credit facility that Leidos will enter into before the IS&GS transaction closes.
Leidos is paying $5 billion for IS&GS. Leidos and Lockheed Martin announced the deal in January.
Along with the Information Systems and Global Solutions business comes Lockheed’s share in Mission Support Alliance: a three-way partnership that also includes Centerra and Jacobs, and which provides support services for nuclear waste cleanup at the Energy Department’s Hanford site near Richland, Wash. Including options, Mission Support Alliance’s 10-year contract could be worth as much as $3.6 billion through May 25, 2019.
