An undisclosed buyer has signed a definitive agreement to acquire Varec, a wholly owned subsidiary of Leidos, for an undisclosed sum.
Leidos said Thursday the transaction is expected to be finalized in the fourth quarter of 2025, subject to customary closing conditions.
The move supports Leidos’ ongoing portfolio optimization efforts under its NorthStar 2030 strategy.
“This transaction enables both Leidos and Varec to advance their missions and maximize long-term value,” said Vicki Schmanske, president of the commercial and international sector at Leidos. “By refining our portfolio, we’re executing our NorthStar 2030 strategy at pace and sharpening our focus on our strategic growth pillars.”
What Is Leidos’ NorthStar 2030 Strategy?
At a quarterly earnings call in May, Leidos CEO Thomas Bell discussed NorthStar 2030 and the five pillars underpinning the strategy: space and maritime; energy infrastructure; digital modernization and cyber; highly customized critical mission software; and managed health services.
“These growth pillars have been carefully chosen as our analysis shows clearly that they are areas where customer needs and spending will continue to grow robustly,” Bell, a two-time Wash100 awardee, told investors and analysts at the time.
What Does Varec Do?
Established in 1928, Varec provides automated fuel management platforms for defense and commercial customers worldwide.
Varec, acquired by Leidos in 2006, supports the Department of Defense and international defense agencies by offering integrated tools for air, ground and marine logistics to control, measure and automate fuel management, enabling customers to gain visibility into local and remote inventories. One of its offerings is FuelsManager software, which is certified and accredited under DOD’s Risk Management Framework.
