Analogic gets $1B debt package for Leidos security combination

Analogic makes CT scanners that inspect passenger bags, while the Leidos security businesses now combined with it supply systems for screening vehicles and cargo at airports, ports, borders and critical-infrastructure sites. Blackstone Credit & Insurance announced a $1 billion financing for the newly combined, privately held company, which operates under the Analogic name.

At an airport checkpoint, Analogic’s ConneCT system uses computed-tomography imaging and threat-detection software to build three-dimensional views of a carry-on. The company says the system is designed to reduce false alarms and the need to remove liquids and electronics, while its network can send images to remote screeners.

The Leidos assets broaden that workflow beyond luggage. VACIS X-ray systems inspect trucks, cargo containers and railcars for weapons, drugs and other contraband, while radiation portals flag nuclear material. Mezzo software pulls data from multiple inspection systems into a common interface for security operators, and Analogic also provides lifecycle support.

The combination closed October 5. A Leidos filing says Altaris affiliates own 58.5% of the joint venture and Leidos owns 41.5%. It also shows that cash from new debt financing bought part of Analogic’s holding company from Altaris affiliates. The package therefore helped complete an ownership transfer rather than serving solely as growth capital. Blackstone led the financing alongside HPS, Bank of America and Wells Fargo.

When the deal was announced in April, Leidos said it would contribute about 1,500 employees representing $625 million of projected 2026 revenue. The companies said they intended to combine research, manufacturing and operations while accelerating work on artificial-intelligence and three-dimensional imaging systems. Those remain company-stated aims, not demonstrated results of the integration.

Neither Blackstone nor Leidos disclosed the interest rate, maturity, the combined company’s revenue or how much of the $1 billion funded the ownership purchase. That leaves the leverage created by the combination impossible to assess from the announcements.