The JV deconsolidates a ~$500M+ revenue segment (SES/IA) from Leidos's financials, which will reduce reported top-line growth but also remove associated debt service. Monitor Leidos's next 10-Q for the deconsolidation impact and any guidance revision reflecting the JV's standalone performance. The 7-year liquidity put provides a floor for Leidos's exit optionality.
Price Chart
Executive Summary
Leidos closed its previously announced joint venture with Altaris, contributing its Security Enterprise Solutions and Industrial Automation businesses to Nickel JV Ultimate Parent, LLC in exchange for a 41.5% equity stake. The JV combines these assets with Analogic, an Altaris portfolio company, and Leidos retains minority protective rights including board representation, tag-along rights, and a liquidity put after seven years. This is a structural event that deconsolidates a non-core business line from Leidos's financials, with no new financial guidance or earnings impact disclosed.
Key Financial Metrics
Key Facts
- Leidos contributed its SES/IA Business to the JV in exchange for 41.5% of the JV's equity.
- Altaris affiliates (AHP Entities) contributed Analogic equity and received 58.5% of the JV.
- The JV (Nickel JV Ultimate Parent, LLC) was funded with new debt financing to purchase remaining Analogic equity from Altaris.
- Leidos retains minority board seats (2 of 6 directors) and protective rights over material actions, including leverage limits, related-party transactions, and changes to governance.
- Leidos has tag-along rights, drag-along rights (as minority), and a liquidity demand right exercisable after the seventh anniversary of closing.
- The JV Agreement includes a 6.5x Consolidated EBITDA leverage covenant requiring Leidos consent to exceed.
- Leidos reported approximately $17.2 billion in annual revenues for FY ended January 2, 2026.
Financial Impact
Leidos received a 41.5% minority stake in the JV; no cash consideration or deal value was disclosed. The JV used new debt financing to acquire the remaining Analogic equity from Altaris.
Risk Factors
- Leidos's 41.5% minority stake gives it limited control over JV operations but limited upside if the JV underperforms.
- The JV's debt financing adds leverage to a combined entity with Analogic's existing debt; the 6.5x EBITDA covenant provides some protection but does not eliminate default risk.
- The JV Agreement's drag-along rights allow Altaris to force a sale after 3 years if enterprise value exceeds a redacted threshold, potentially forcing Leidos to sell at an inopportune time.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-413208 |
| Document: d157380d8k.htm | 0001193125-26-413208 |
| Document: d157380dex991.htm | 0001193125-26-413208 |
| Document: 0001193125-26-413208-index-headers.html | 0001193125-26-413208 |
| Document: 0001193125-26-413208-index.html | 0001193125-26-413208 |
| Document: 0001193125-26-413208.txt | 0001193125-26-413208 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | Institutional Cluster | $136.08 | awaiting T+20 | — | $139.86 (+2.78%) |
Oct 14, 2026 12d ago | Press Release | $120.59 | awaiting T+20 | — | $139.86 (+15.98%) |
Oct 13, 2026 14d ago | GOVT-CONTRACT | $120.59 | awaiting T+20 | — | $139.86 (+15.98%) |
Oct 6, 2026 20d ago | Press Release | $116.69 | awaiting T+20 | — | $139.86 (+19.86%) |
Oct 5, 2026 21d ago | 8-K | $119.45 | awaiting T+20 | — | $139.86 (+17.09%) |
Oct 1, 2026 25d ago | 8-K | $121.97 | awaiting T+20 | — | $139.86 (+14.67%) |
Sep 29, 2026 27d ago | Press Release | $123.10 | awaiting T+20 | — | $139.86 (+13.61%) |
Sep 29, 2026 28d ago | GOVT-CONTRACT | $121.83 | awaiting T+20 | — | $139.86 (+14.80%) |
Sep 29, 2026 28d ago | GOVT-CONTRACT | $121.83 | awaiting T+20 | — | $139.86 (+14.80%) |
Sep 25, 2026 4w ago | GOVT-CONTRACT | $122.35 $139.86 | ▲ +14.31% | ▲ +14.34% | $139.86 (+14.31%) |
US Market Status
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