L3 to Buy Cyber Firms Linchpin Labs, Azimuth Security for $200M; Christopher Kubasik Comments

Christopher Kubasik

L3 Technologies (NYSE: LLL) 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.

L3 said Wednesday the acquired companies will operate as L3 Trenchant upon the deal’s completion that is expected to close in the second half of 2018, subject to regulatory clearances and customary closing conditions.

Christopher Kubasik, L3 chairman, president and CEO, said the acquisitions seek to advance the company’s responsiveness, capabilities and position as a provider of command, control, communications, computers, cyber defense, combat systems, intelligence, surveillance and reconnaissance platforms.

“We are making targeted investments in cutting-edge technologies and integrating them with existing capabilities to support our domestic and international customers in strategically important business areas,” added Kubasik, a 2017 Wash100 recipient.

Azimuth Security is a Sydney-based data security consultancy that provides threat modeling and design, source code review and software systems analysis services for commercial software clients.

Ottawa, Canada-based Linchpin Labs is a software development firm that offers information technology security, low-level and cross-platform systems development and computer network operations support services.

L3 said it expects the combined business to add approximately $65 million in net sales for 2019.

The combined acquisition price is subject to an increase of up to $32 million in common stock based on L3 Trenchant’s post-acquisition sales for each of the one-year periods payable from 2019 through 2021.

The transaction came a week after L3 acquired Columbia, Md.-based Applied Defense Solutions for approximately $50 million as part of efforts to expand its space mission capabilities.

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