Summary
Lockheed Martin Corporation (LMT) has filed an 8-K report detailing the completion of a significant strategic transaction on August 16, 2016. The company has successfully executed a Reverse Morris Trust transaction, separating its Information Systems & Global Solutions (IS&GS) business segment and merging it with Leidos Holdings, Inc. This transaction is expected to allow Lockheed Martin to focus on its core aerospace and defense operations. As a result of this transaction, Lockheed Martin received a substantial one-time special cash payment of $1.80 billion. Additionally, the company reduced its outstanding common stock by approximately 9.4 million shares through an exchange offer. This move streamlines the company's structure and aims to enhance shareholder value by concentrating on its primary defense and technology segments, while the separated IS&GS business joins forces with Leidos, creating a new, larger entity.
Key Highlights
- 1Completion of a Reverse Morris Trust transaction involving the Information Systems & Global Solutions (IS&GS) business segment.
- 2The IS&GS business segment was merged with Leidos Holdings, Inc.
- 3Lockheed Martin received a one-time special cash payment of $1.80 billion.
- 4Lockheed Martin reduced its outstanding common stock by 9,369,694 shares.
- 5The transaction involved an exchange offer of Lockheed Martin shares for shares of its subsidiary, Abacus Innovations Corporation, which then merged with a Leidos subsidiary.
- 6Unaudited pro forma consolidated financial information for Lockheed Martin, reflecting the impact of the transaction, is filed as an exhibit.
- 7The company aims to enhance focus on its core aerospace and defense businesses.