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Leidos Holdings Inc. saw its stock climb 1.8% on Thursday after the company said it will sell its subsidiary, Varec, as part of its ongoing effort to streamline operations and focus on key growth areas.
The move is part of Leidos’ “NorthStar 2030” strategy, introduced earlier this year, which focuses on reshaping its business portfolio and investing in its strongest segments. Varec, which Leidos bought in 2006, has been providing fuel management and automation systems to both military and commercial clients worldwide since its founding in 1928.
Vicki Schmanske, president of Leidos’ Commercial and International Sector, said the sale will allow both Leidos and Varec to pursue their missions more effectively and create more long-term value. She added that refining the company’s portfolio is helping Leidos stay on track with its 2030 vision and better focus on its main areas of growth.
The sale is expected to close in the fourth quarter of 2025, pending regulatory approvals and other closing conditions. Leidos did not disclose the financial details of the deal.
Investors welcomed the news, seeing it as a smart step that could help the company concentrate its resources on core operations, improve efficiency, and strengthen its position in high-priority markets.