Security Experts:

Capgemini to Acquire Leidos Cyber

French IT consultancy firm Capgemini announced Thursday an agreement to acquire Leidos Cyber from the U.S.-based Leidos. The acquisition is subject to anti-trust and Committee of Foreign Investment in the United States (CFIUS) approvals, and is expected to complete before the end of 2018. Financial terms have not yet been disclosed.

Founded in 1967, the Capgemini Group employs more than 200,000 people in more than 40 countries. It focuses on consulting, technology services and digital transformation; and reported global revenue of EUR 12.8 billion in 2017.

In terms of its heritage, a Capgemini spokesperson told SecurityWeek, "Leidos Cyber was formed through the mergers, since 2011, of Lockheed Martin’s corporate division, Industrial Defender and Leidos’ own commercial cybersecurity business."

Leidos was formerly known as Science Applications International Corporation (SAIC), which changed its name in 2013. A new SAIC was then spun off Leidos, retaining the original name. Leidos Cyber is the cybersecurity arm of Leidos Holdings, employing almost 500 cybersecurity professionals across the North America. Leidos reported 2017 revenues of $10.2 billion. 

The products and services of the two organizations complement each other. Capgemini gives a global market to Leidos Cyber's services; while Leidos Cyber will give Capgemini a much stronger footing in the U.S. 

"Leidos Cyber is a pioneer in the field of cybersecurity. It defined the market in protecting the industrial control ecosystem for the mission critical infrastructure needs of global enterprises," comments Paul Hermelin, Chairman and CEO, Capgemini. Leidos' core market comprises government and highly regulated industries.

"Its world class security expertise and status as a trusted advisor to many Fortune 500 leaders," continued Hermelin, "makes it totally complementary to Capgemini's global cybersecurity practice. It is the perfect fit to reinforce our cybersecurity practice in North America, to help meet the security requirements of our international client base."

Robert Meindl, president of Leidos Cyber, is also confident, calling Capgemini 'a natural home for our commercial cybersecurity team'. "Not only will we be able to play our part in augmenting the North America cybersecurity practice," he said, "but we also look forward to adding value to the global security provisions of Capgemini's clients around the world."

Angie Heise, president at Leidos Civil Group, added, "Capgemini's commitment to engaging a broad set of commercial markets makes it an ideal fit for the Leidos Cyber business."   

Related: SAIC Plans to Build Cyber Security Powerhouse with NYU-Poly Cyber Security Program 

Related: SAIC Opens Cyber Innovation Center in Maryland 

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Kevin Townsend is a Senior Contributor at SecurityWeek. He has been writing about high tech issues since before the birth of Microsoft. For the last 15 years he has specialized in information security; and has had many thousands of articles published in dozens of different magazines – from The Times and the Financial Times to current and long-gone computer magazines.