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SAIC Board OKs Spinoff Plan, Sets Date for Split; Tony Moraco Comments

Tony Moraco - SAIC,  ExecutiveMosaicScience Applications International Corp.‘s (NYSE: SAI) board of directors has approved the company’s plan to complete the spinoff of its services business after the market closes Sept. 27.

SAIC will change its name to Leidos Holdings and the services business will be held by SAIC Gemini, which will be renamed Science Applications International Corporation,  SAIC said Monday.

On Sept. 30, Leidos will begin trading on the New York Stock Exchange under the ticker symbol LDOS and shares of Science Applications will begin trading on the NYSE under the ticker symbol SAIC.

Tony Moraco, future CEO of Science Applications, said the spinoff aims to reduce organizational conflicts of interest and help the company pursue new market opportunities in enterprise information technology.

The board also approved a pro rata dividend for holders of shares in SAIC Gemini.

Each SAIC stockholder of record as of the close of business on Sept. 19 will receive one share of common stock of Science Applications for every seven shares of common stock of SAIC held as of the record date.

Science Applications will pay SAIC a $295 million cash dividend as part of $500 million in debt financing the spun-off company will contract as part of the split.

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