Leidos [LDOS] on Thursday said it expects to close the transaction for Lockheed Martin’s [LMT] Information Systems & Global Solutions (IS&GS) business on Aug. 16 and plans to pay its shareholders of record a special cash dividend.iStock Computer

The company said the dividend would be $13.64 per share, which will amount to about a $1 billion payment, and is conditioned on the transaction for IS&GS closing. Leidos said the dividend will be paid to stockholders on or about Aug. 22 to Leidos shareholders of record as of Aug. 15.

The dividend payment will be funded with cash on hand and borrowings under a new term loan and revolving credit facility that Leidos will enter into before the IS&GS transaction closes.

Leidos is paying $5 billion for IS&GS. Leidos and Lockheed Martin announced the deal in January.