Reuters is reporting that Leidos is the winning bidder for Lockheed Martin's IT business in a deal worth around $5 billion, beating out rival contractor CACI International. If true, the deal would make the combined entity the largest government services provider in the US. The transaction will be structured under a Reverse Morris Trust which allows the divestiture to occur in a tax-efficient manner. Both companies could announce the deal as early as next week.
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