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.

Check Also

Michael Kratsios Acting Undersecretary DoD

Michael Kratsios Appointed Acting DoD Undersecretary for Research, Engineering

Michael Kratsios, U.S. chief technology officer and a 2020 Wash100 Award winner, has been named acting undersecretary of research and engineering at the Department of Defense.

Paul Strasser CEO Brillient

Brillient Wins $112M BPA to Modernize USDA FPAC Records Mgmt System; Paul Strasser Quoted

Brillient has secured a single-award, $112 million blanket purchase agreement from the Department of Agriculture, the company announced Monday. "We are extremely pleased to bring our strong digital transformation and agile development capabilities coupled with our expertise in electronic records management to assist the USDA in this important mission area,” said Paul Strasser, CEO of Brillient.