Lockheed Martin separates IS&GS unit, merges it with Leidos in $4.6bn deal
The closing of the merger followed the expiration of the exchange offer and the satisfaction of certain other conditions.
As part of the transaction, Lockheed Martin received a $1.8 billion special cash payment, which the corporation will use to repay debt, pay dividends, and/or repurchase its stock.
As a result of the exchange offer, Lockheed Martin reduced outstanding shares of its common stock by 9,369,694 shares, or approximately 3% of the outstanding common shares. Lockheed Martin stockholders who participated in the exchange offer received an approximately 50.5 percent stake in Leidos, approximately 77 million shares of Leidos common stock.
The special cash payment, plus the shares of Leidos common stock to be received by participating Lockheed Martin stockholders, valued based on Leidos’ August 15 closing price adjusted for the $13.64 per share Leidos special dividend to be paid, results in an aggregate transaction value of approximately $4.6 billion. ■