When Science Applications International Corp (SAIC) first split into two separate companies in 2013, with its parent company taking the name Leidos, it was a $4 billion spin-off company. Since that time, SAIC has grown into a $7.1 billion industry leader. As of May, it ranks no. 466 on the Fortune 500 list, its first time back on the list since the split. Their recent acquisition of Unisys Federal for $1.2 billion alongside major new U.S. Air Force and intelligence agency contracts positions them for significant growth ahead.
Based in Reston, Virginia, SAIC provides scientific, engineering, and technology applications and solutions to security, energy, environmental, health, and infrastructure markets worldwide. The company has 6,500 local employees and 23,000 internationally, making it one of the largest government IT contractors in the DC area.
Unisys Federal is the federal services IT business of Unisys Corp, a multi-billion dollar global IT company. SAIC’s purchase of Unisys Federal is their first major acquisition since January 2019, when they acquired Engility Holdings in 2018 at $2.5 billion. Their purchase of Engility, a competitor, opened a door to the space and intelligence sectors. The move has resulted in significant growth for the company.
SAIC’s Vice President of Managed Solutions emphasized SAIC’s unrelenting focus on user experience as part-and-parcel of their Unisys Federal acquisition, in a statement on MeriTalk. She highlighted the way their user services programs will further strengthen their existing capabilities and aid them in delivering a truly seamless experience for government customers.
Despite the COVID-19 pandemic, SAIC had continued to operate as an essential business, according to CEO Nazzic Keene. Although the crisis had resulted in a first quarter impact of about $33 million in revenue, the company has many exciting new developments. The contracts they’ve recently won will support a variety of U.S. Department of Defense, space, and intelligence community customers, alongside other business wins. They include a potential $630 million contract to develop and maintain an integrated weather information system for the U.S. Air Force over a 5-year period. They have also won a $378 million contract from the Federal Aviation Administration (FAA) to provide and modernize a variety of end-user services to be executed over a 10-year period. It seems SAIC has much to look forward to as it dives into these major projects.