France’s Capgemini on June 7 said it has agreed to acquire the commercial cyber security services business from Leidos [LDOS], which will continue to provide cyber solutions to its government customers.
Terms of the deal, which is expected to close later in 2018, were not disclosed. Capgemini, which provides professional and consulting services, said the pending acquisition will complement its existing cyber security work and help it meet growing demand across North America for these capabilities.
Most of the Leidos commercial cyber security business was acquired through the purchase of Lockheed Martin’s former Information Systems and Global Solutions business in 2016. The business serves mostly Fortune 500 customers.
“Leidos Cyber is a pioneer in the field of cyber security,” Paul Hermelin, chairman and CEO of Capgemini, said in a statement. “Its world class cyber security expertise and status as a trusted adviser to many Fortune 500 leaders makes it totally complementary to Capgemini’s global cyber security practice. It is the perfect fit to reinforce our cyber security practice in North America, to help meet the security requirements of our international client base.”
Leidos doesn’t break out the sales of its cyber work and Capgemini declined to say what the sales of the business are. Leidos Cyber has nearly 500 cyber security professionals. Capgemini said that the business provides “enterprise clients a holistic platform that services their entire security architecture demands, including integrated offerings for security combined with managed security services.”
Leidos joins other U.S. government contractors, including Boeing [BA], General Dynamics [GD] and Lockheed Martin, which have shed their commercial cyber businesses to focus their remaining cyber solutions on their federal customers.
Angie Heise, president of Leidos’ Civil Group, said the commercial business is being divested as a “result of our deliberate focus on providing solutions, including cyber, to our core markets, governments and highly regulated industries.”
Robert Meindl, president of Leidos Cyber, will be joining Capgemini.
Capgemini had about $15.1 billion in sales in 2017 with North America accounting for 31 percent of the work.
The transaction is subject to approval by the Committee on Foreign Investment in the United States.