Government contractor SAIC to split into two firms

Lenny Ignelzi/AP file photo

Science Applications International Corp. will be splitting off into two publicly traded companies, according to a statement SAIC released.

One of the new companies will focus on government technical services and information technology, while the other will target what SAIC called “high-growth markets” in national security, engineering and health. The company expects the technical services business to bring in revenues of approximately $4 billion dollars in 2013, whereas revenues estimates for the solutions business stand at $7 billion.

“Our two new companies will be designed so that their businesses can be more differentiated and more competitive in their own space,” SAIC Chairman and CEO John Jumper said. “More importantly, that addressable space will expand for each as we eliminate the burden of organizational conflicts of interest.”

The spinoff was created following a meeting of SAIC’s board of directors, which decided the move would increase shareholder value in both companies. The company said if all the necessary regulatory paperwork and filings go through, the separation should be complete by 2014.

Earlier this summer, SAIC lost a $3.3 billion contract to manage the Defense Department’s Global Information Grid to Lockheed Martin Corp. In September 2011, backup tapes for 4.9 million beneficiaries of TRICARE health care program were stolen from an SAIC employee’s vehicle.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    View
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    View
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    View
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    View
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    View
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    View
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    View

When you download a report, your information may be shared with the underwriters of that document.