Thursday, August 30, 2012

SAIC to Split in Two with One Focus on Cyber + Big Data

Science Applications International Corporation (SAIC) announced plans to split into two stand alone businesses:

  • A technical services business focused on government technical services and enterprise IT businesses.  It will be one of the largest, pure-play government services companies.  The spin-off will make it independent of potential OCI restrictions caused by its current relationship with other SAIC business pursuits, specifically those involved in developing ISR solutions and products for the Department of Defense and Intelligence agencies.  Pro forma revenue for the fiscal year ending January 31, 2013 for the future technical services business is estimated at $4 billion.
  • A solutions-focused business delivering science and technology solutions in three high-growth markets that reflect high priority, long-term global needs – national security, engineering and health. These markets are experiencing a convergence of the physical and digital worlds. They operate in complex, data rich environments.  This business will offer mission-critical systems that leverage SAIC's rapidly emerging technologies in cyber defense and big data analytics.  Separation from SAIC's services business will allow this business to have unimpeded access to significant new business opportunities in both Major Defense Acquisition Programs (MDAP) and Programs of Record (POR) in multiple Command, Control, Communications, Computers, and Intelligence (C4ISR) regimes.  Pro forma revenue for the fiscal year ending January 31, 2013 for the future solutions-focused business is estimated at $7 billion.

"In this next step of our strategic plan we configure ourselves for the future.  Our two new companies will be designed so that their businesses can be more differentiated and more competitive in their own space.  More importantly, that addressable space will expand for each as we eliminate the burden of organizational conflicts of interest (OCI)," said John Jumper, chairman and chief executive officer. "This affords both companies an excellent opportunity to combine optimized cost structures, unrestricted access to their respective markets, and the leveraging of decades of SAIC's scientific and engineering excellence to unleash the growth and value we can deliver to our customers, employees and shareholders."

  • In 2010, SAIC acquired CloudShield Technologies, a supplier of carrier-grade cybersecurity and management solutions. Financial terms were not disclosed.  CloudShield offers a CS-4000 next generation trusted network security platform for protecting critical carrier and enterprise infrastructure.  The CS-4000 deep packet inspection platform allows carriers and enterprise customers to integrate a variety of subscriber data privacy products. It also brings significant improvements to data rates and network security while reducing the total cost of ownership of the network architecture.

    The CS-4000's architecture combines the power of CloudShield's fourth-generation deep packet inspection (DPI) capabilities with the most advanced multi-core, general-purpose processing in a single converged platform for scalable, active network solutions. The system is hardened both at the operating system and with physical security countermeasures protecting the system itself.