Leidos executed a key strategic move by signing a definitive agreement to divest Varec, its wholly-owned subsidiary specializing in automated fuel management. An undisclosed buyer will acquire Varec for an undisclosed sum, with the transaction expected to finalize during the fourth quarter of 2025, subject to customary closing conditions.
This divestiture directly supports Leidos’ ongoing portfolio optimization efforts under its overarching NorthStar 2030 strategy. Leidos aims to sharpen its focus on strategic growth areas through this refinement.
Vicki Schmanske, President of the Commercial and International Sector at Leidos, emphasized that the transaction positions both Leidos and Varec to advance their respective missions and maximize long-term shareholder value. She stated that the company executes its NorthStar 2030 strategy at pace by refining its portfolio.
The NorthStar 2030 strategy, previously detailed by Leidos CEO Thomas Bell, rests on five key growth pillars identified as areas demonstrating robust customer needs and spending growth. These strategic areas include space and maritime, energy infrastructure, digital modernization and cyber, highly customized critical mission software, and managed health services.
Established in 1928, Varec delivers essential automated fuel management platforms to both commercial and defense customers globally. The company supports the Department of Defense (DOD) and numerous international defense agencies by providing integrated tools for air, ground, and marine logistics.
Varec’s offerings enable customers to control, measure, and automate fuel management, granting clear visibility into both local and remote inventories. Notably, Varec’s FuelsManager software holds certification and accreditation under the DOD’s Risk Management Framework (RMF). Leidos originally acquired the specialized subsidiary in 2006.
