Â Â Â L3 Technologies Enjoys Strong M&A Activity in July
This week, Iâd like to highlightÂ L3 TechnologiesÂ which has engagedÂ in a series of high-profile M&A deals this month. Particularly, I want to offer my congratulations to Christopher Kubasik, chairman, president and CEO, and aÂ 2017 Wash100 winner, for his strong leadership, as well as for the dynamic L3 executive team he has assembled.Â
On July 3rd, GovConWireÂ reportedÂ that New York City-based L3 purchasedÂ Applied Defense Solutions, an aerospace engineering and space situational awareness services provider, in a deal valued at approximately $50 million. L3 said the newly acquired firm, which will operate asÂ L3 ADS, will boost its space mission capabilities. These include space exploration, space systems mission planning and satellite operations, and resiliency and protection services forÂ DoD,Â NASAÂ and intelligence community customers.
On July 5th, GovConWireÂ detailedÂ that L3 finalized the sale of itsÂ Vertex AerospaceÂ business segment toÂ American Industrial PartnersÂ in a cash transaction valued at approximately $540 million. The deal includes L3âsÂ TCSÂ andÂ Crestview AerospaceÂ business units, which operate under Vertex. In the press release, Kubasik said the sale represents L3âs aim to better align its portfolio with client priorities, with proceeds being reinvested in growth opportunities.
On July 12th, GovConWireÂ reportedÂ L3âs intention to acquire IT security firmsÂ Linchpin LabsandÂ Azimuth SecurityÂ for an approximately combined $200 million. The move is meant to help L3 develop synergies for fueling growth and build up its cyber, surveillance and intelligence services. L3 said the companies will operate as L3 Trenchant and expects the deal to finalize in the second half of 2018, subject to customary closing conditions. L3 projects the new business will add approximately $65 million in net sales for 2019.
Â Â Â Boosting its unmanned aerial vehicles offerings, L3 also recently acquired Latitude Engineering whose products include theÂ HQ-60 Hybrid Quadrotor UAV, sUAS NewsÂ reportedÂ Tuesday. The UAV is capable of autonomous vertical take-off and landing.
L3Â postedÂ $9.6 billion in 2017 sales. The company willÂ releaseÂ its 2018 second quarter earnings on Thursday, July 26th.
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L3 Technologies has agreed to purchase information security firms Linchpin Labs and Azimuth Security for approximately $200 million combined in a push to develop synergies for future growth and build up its cyber, surveillance and intelligence collection capabilities.
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Weekly Roundup July 16Â – July 20, 2018 Click here to seeÂ Real-Time GovCon Sector Quotes Executive Mosaicâs Weekly GovCon Round-Up: L3 Technologies’Â M&A ActivityÂ & Top 10 Stories Jim Garrettson, Executive Mosaic CEO Â Â Â L3 Technologies Enjoys Strong M&A Activity in July This week, Iâd like to highlightÂ L3 TechnologiesÂ which has engagedÂ in a series of high-profile M&A