Lockheed Martin separates with IT unit in Leidos merger deal

small fed news

“…the Lockheed-Leidos deal indicates how massive contractors continue to fare well, while midsize IT companies continue to struggle.

“It’s a mature market, and mature markets award scale,” Aberman said. “[Lockheed and Leidos] can be profitable because they’re more efficient.”

While the current state of industry doesn’t bode well for midsized contractors, Aberman said the conditions have been right for startups.

“There’s an enormous advantage in the world of tech to be really, really large and benefit from scale, or be really, really small and be nimble,” he said. “You either win on scale or you win on uniqueness.”

Read entire article from Federal News Radio.

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