Jim Reagan, Leidos CFO, Chosen to 2017 Wash100 for Post-Merger Synergy Leadership
Executive Mosaic is glad to unveil Leidos Chief Financial Officer Jim Reagan as an inductee into the 2017 Wash100 — Executive Mosaic’s annual selection of the government contracting arena’s most influential voices.
The nearly two-decade finance veteran joined Leidos in 2015 as CFO and the next year helped steer the Reston, Va.-based contractor through its summer merger into Lockheed Martin‘s former government services business to double in scale.
Leidos expects $10 billion-$10.4 billion in sales for 2017 versus the $5.1 billion recorded during 2015, the company’s last full year prior to the combination with the Lockheed information systems and global solutions segment.
Consolidation of overhead, information technology and real estate are key for Leidos to pursue its market strategy at the added scale with $1.2 billion in cost synergies targeted by 2019.
Leidos met its 2016 goal of $200 million in cost synergies that year and is “well on (the) way” to $296 million in savings by the end of this year, Reagan told investors in the company’s fourth quarter earnings call Feb. 19.
“Many of this year’s savings will be driven by systems migrations, which are dispersed throughout the year primarily related to our human capital management systems and our IT backbone for the IS&GS business, which will be pulled away from Lockheed at the end of the year,” Reagan added.
Leidos also aims to realize $425 million in revenue synergies by 2019 and will look at potential takeaway opportunities the company could not pursue before the merger, Reagan said to analysts then.
“That wouldn’t be possible without the improvement that we’ve got to our cost structure and our bid structure.”