On Monday, government contractor SAIC (UNKNOWN:SAI.DL) updated investors on its plan to split itself into two companies, one a $4 billion-a-year services business focusing on technical services and enterprise information technology; the other a $7 billion-a-year company concentrating on health care, engineering, and, in particular, national security, including the hot area of cybersecurity.
According to the company, the first business will retain the SAIC name post-split. The larger, spun-off, security/health-care/engineering business, in contrast, will be named Leidos, which the company explained is a "clipped" version of the word "kaleidoscope."
(For those still confused, management further clarified that it came up with the "kaleidoscope" name because the new company "will bring together solutions from different angles, yielding innovative and effective solutions.")
The company noted that going forward, current Chief Operating Officer Stu Shea will serve as president and COO of Leidos under Chairman and Chief Executive Officer John Jumper.
The new SAIC will get a brand-new CEO to match -- current ISR Group President Tony Moraco -- when the split officially takes place sometime in the second half of this year.