Government information technology services vendor Science Applications International Corp., which has a significant footprint in health IT, plans to split in two and create a pair of publicly traded companies, according to a news release.
"Our two new companies will be designed so that their businesses can be more differentiated and more competitive in their own space," said John Jumper, chairman and CEO of McLean, Va.-based SAIC, in the release. "More importantly, that addressable space will expand for each as we eliminate the burden of organizational conflicts of interest. 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."
One business will focus on technical services, including government technical services and enterprise IT businesses, according to the release. The other will focus on "delivering science and technology solutions in three high-growth markets that reflect high-priority, long-term global needs—national security, engineering and health."
The separation is expected to occur in the latter half of the company's next fiscal year, according to the announcement. SAIC's current fiscal year ends Jan. 31, 2013.