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Investing.com -- Leidos Holdings Inc (NYSE:LDOS) stock climbed 1.8% on Thursday after the company announced a definitive agreement to sell its wholly owned subsidiary, Varec, as part of its portfolio optimization strategy.
The transaction aligns with Leidos’ NorthStar 2030 strategy unveiled earlier this year, which aims to refine the company’s portfolio and focus on strategic growth pillars. Varec, founded in 1928 and acquired by Leidos in 2006, provides automated fuel management solutions for defense and commercial customers globally.
"This transaction enables both Leidos and Varec to advance their missions and maximize long-term value," said Vicki Schmanske, president of the Commercial & International Sector at Leidos. "By refining our portfolio, we’re executing our NorthStar 2030 strategy at pace and sharpening our focus on our strategic growth pillars."
The company expects the transaction to close in the fourth quarter of 2025, subject to customary closing conditions. Financial details of the sale were not disclosed in the announcement.
Investors responded positively to the news, viewing the divestiture as a strategic move that could allow Leidos to concentrate resources on its core business areas and potentially improve operational efficiency.
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