L-3 Adds New ISR Tools with ForceX Acquisition; KippsdeSanto’s Karl Schmidt on ISR’s M&A Environment

soldier-equipment-c4isrL-3 Communications (NYSE:LLL) has bought intelligence, surveillance and reconnaissance software and geospatial technology company ForceX for an undisclosed amount as part of efforts to grow L-3’s integrated sensor systems business.

L-3 said Tuesday it expects the transaction to immediately help increase its earnings and has renamed the Nashville, Tennessee-based business L-3 ForceX.

“We have been strategically repositioning our portfolio by adding new capabilities that are aligned with our customers’ priorities, ” said Michael Strianese, L-3 chairman, president and CEO.

ForceX develops sensor integration tools, hardware and video algorithms, cueing system software and tactical data management platform, and training materials.

The business has supported multiple ISR and classified programs at the U.S. Defense Department.

Tysons Corner, Virginia-based investment bank KippsdeSanto advised ForceX on its sale to L-3.

Karl Schmidt, a managing director at KippsDeSanto, told GovCon Wire his firm sees the ISR arena as one that presents a “solid opportunity” for contractors looking at potential acquisition deals to expand their hardware and software portfolios.

ForceX has focused on software products at the tactical level with situational awareness for soldiers as a key aspect of their offerings, Schmidt added.

New York City-based L-3 posted $12.1 billion in sales for its 2014 fiscal year and forecasts the company will generate additional sales of up to $30 million by Dec. 31, 2016 with the acquisition of ForceX.

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