Leidos has agreed to sell its wholly owned subsidiary Varec, a provider of automated fuel‑management solutions for defense and commercial customers worldwide.
The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions.
Varec, founded in 1928 and acquired by Leidos in 2006, has supplied the Defense Logistics Agency with its FuelsManager® software and serves a global customer base.
The divestiture aligns with Leidos’ NorthStar 2030 strategy, which focuses on five growth pillars: space and maritime; energy infrastructure; digital modernization and cyber; highly customized critical mission software; and managed health services.
By divesting Varec, Leidos aims to free capital and management attention for its core growth areas, including cyber, digital modernization, and space & maritime capabilities.
Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3 2025 and employs about 47,000 people worldwide.
The sale is part of a broader trend in the defense and technology sectors where companies streamline portfolios to focus on high‑growth competencies.
Leidos’ Q1 2025 revenue grew 7% year‑over‑year to $4.2 billion, and the company projects fiscal 2025 earnings per share between $10.35 and $10.75.
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