Leidos has agreed to combine its security enterprise solutions, or SES, business with Analogic, an Altaris-backed company, to form a joint venture focused on security screening systems for airports, borders and critical infrastructure.
As Leidos advances next-generation security screening through its new joint venture, industry leaders will continue the conversation at the 2026 Homeland Security Summit. The Nov. 12 event will bring together government and industry experts shaping the future of aviation, border and critical infrastructure security. Register now!
Leidos said Wednesday the companies expect to complete the transaction in the second half of 2026, subject to regulatory approvals and other customary closing conditions.
What Will Be the Focus Areas of the Leidos SES-Analogic Joint Venture?
The joint venture will concentrate on developing and delivering advanced detection and imaging systems for security screening environments by integrating manufacturing and engineering capabilities and complementary detection technologies into a single enterprise.
The new entity will also advance its adoption of 3D imaging and artificial intelligence-native platforms while addressing inefficiencies in research and development, manufacturing and operations to support the development of screening capabilities.
“Our unified joint venture represents a focused step to strengthen U.S. capabilities in security detection at a time when global travel and trade continue to grow,” said Leidos CEO Tom Bell.
“Combining SES with Analogic will position the new company to promote investment in innovation, deliver more efficient solutions for the U.S. government and ensure that the world’s advanced security technology is designed and engineered from the United States,” added Bell, a 2026 Wash100 awardee.
Analogic CEO Tom Ripp said the combination of the two organizations will create a more capable company with expanded expertise and a broader range of platforms to address evolving customer requirements worldwide.
What Are the Details of the Transaction?
Under the agreement, Leidos will transfer about 1,500 employees from its SES business to the joint venture, representing roughly $625 million in projected 2026 revenue. The new entity will operate under the Analogic name as a privately held company, with Leidos holding a minority stake.
Leidos selected PJT Partners as financial adviser and engaged Fried Frank and DLA Piper as legal advisers, with KPMG serving as accounting adviser. Analogic worked with Kirkland & Ellis and Hinckley Allen as legal advisers and Ernst & Young as accounting adviser.
The proposed transaction will enable Leidos to focus on its core growth areas as part of its NorthStar 2030 strategy.
How Does the Joint Venture Align With Leidos’ Broader Security Portfolio?
The planned venture aligns with Leidos’ ongoing work in security screening, logistics support and AI-enabled detection technologies.
The company partnered with Quadridox to develop a checked baggage screening system that combines AI, computed tomography and X-ray diffraction imaging to improve threat detection and reduce false alarms.
Leidos also teamed up with SeeTrue to integrate AI-based threat detection software into screening platforms such as its ClearScan CT system for aviation and border security applications.
In addition, Leidos holds a potential $2.6 billion Transportation Security Administration contract to provide logistics and maintenance support for checkpoint screening equipment deployed across U.S. airports and government-designated facilities.
