Science Applications International Corporation — more commonly SAIC — is breaking up, dividing its businesses into two different publicly traded companies.
The news comes after cuts to the Defense Budget stoked speculation that we'll see another round of mergers, buyouts, and industry realignment, just as happened in the early '90s and late Clinton administration.
During that time, the Defense business consolidated due to the end of the Cold War. Now a shrinking Defense budget after the wars in the Middle East are kicking off a new series of industry change.
SAIC had $5.5 billion worth of government contracts in 2010 alone, and was the sixth largest contractor for the government.
The company focuses on IT and other tech services for the Pentagon and other governmental agencies.
It's too early to tell if this is because of plausible future cuts to SAIC's bottom line, or what will happen to the two new companies. It's not too difficult to imagine SAIC spinning off its defense wing, only to see that bought up by a rival.
Either way: It's starting.
During that time, the Defense business consolidated due to the end of the Cold War. Now a shrinking Defense budget after the wars in the Middle East are kicking off a new series of industry change.
SAIC had $5.5 billion worth of government contracts in 2010 alone, and was the sixth largest contractor for the government.
The company focuses on IT and other tech services for the Pentagon and other governmental agencies.
It's too early to tell if this is because of plausible future cuts to SAIC's bottom line, or what will happen to the two new companies. It's not too difficult to imagine SAIC spinning off its defense wing, only to see that bought up by a rival.
Either way: It's starting.
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