Leidos executive says 1901 Group will be 'aligned with' defense group – but work with all groups

Following its completed acquisition, 1901 Group, which specializes in managed IT services and cloud solutions, will likely begin as a wholly owned subsidiary aligned with Leidos' defense group, according to the head of the defense business.

In an interview with Inside Defense last week, Gerry Fasano said it makes sense for 1901 Group to be paired with the defense group because defense customers have more quickly shifted to managed services.

However, Fasano added, “this is truly going to be a corporate asset” and the company is seeking to use 1901’s platform “across all groups.”

He told Inside Defense Leidos noticed the market shifting to “a managed services buying habit,” particularly as the Army and Air Force turned to other transaction authorities for these kinds of procurements.

“We liked some of our approach, but we didn’t have an end-to-end managed services offering,” Fasano added.

Leidos began to partner with 1901 Group and was impressed with the company’s capability.

Now, with the deal announced and moving forward, Fasano said the integration teams are starting to meet to prepare for the deal’s closing.