7 Jan. 02. L-3 Communications (NYSE:LLL – news) announced that it has acquired SY Technology, Inc. for approximately $48m in cash, plus additional considerations contingent on its financial performance for 2002 and 2003.
SY Technology’s annual sales for 2002 are expected to be approximately $55m, and the acquisition is expected to be slightly accretive to L-3’s earnings in 2002.
Headquartered in Sherman Oaks, CA, SY Technology specializes in air warfare simulation; command, control, communications, computers and intelligence (C4I) architectures; and missile defense and space systems technology for a variety of governmental, military and commercial customers including the Ballistic Missile Defense Organization (BMDO), the Department of Defense and the United States Space Command.
Among the core competencies that SY Technology specializes in are operations research and requirements analysis; missile test planning and support, simulation, training and integration; strategic and theater missile defense target developments; interceptor design and evaluation; optical seeker technology; and military operations research and command and control architectural analysis.
“SY Technology is an excellent acquisition for L-3 because it broadens our base of capabilities within the missile defense market,” said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. “Its missile defense and simulation and training businesses complement the operations of several of our existing divisions, including EER Systems, Coleman Research and MPRI, and allow us to expand our offerings.”
In addition on January 2nd, L-3 Communications announced that it has agreed to acquire the Detection Systems business of PerkinElmer (NYSE:PKI – news), for approximately $100m in cash. The acquisition is expected to close by the end of the first quarter of 2002 and is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. Detection Systems is expected to be accretive to L-3’s earnings in 2002.
PerkinElmer’s Detection Systems business offers X-ray screening for three major security applications: aviation systems for checked and oversized baggage, break bulk cargo and air freight; port and border applications including pallets, break bulk and air freight; and facility protection, such as parcels, mail and cargo. PerkinElmer’s Detection Systems has a broad range of systems and technology, with an installed base of over 16,000 units. Detection Systems’ customer base includes major airlines and airports, a number of domestic agencies, such as the U.S. Customs Service, U.S. Marshals Service, U.S. Department of Agriculture and U.S. Department of State, and international authorities throughout Europe, Asia and South America.
“Now more than ever, this nation and other countries are focused on the importance of security for their people and their infrastructure,” said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. “As a result, luggage, cargo and facility screening technology has become a critical element of our national security. By acquiring Detection Systems, we are taking
a significant step in expanding our existing airport security systems business and becoming a major player in this industry.”
Mr. Lanza noted that this acquisition complements and significantly broadens both L-3’s explosive detection system product line and the company’s manufacturing capability in this area. By acquiring Detection Systems, L-3 moves from a manufacturer of a certified Level 3 checked baggage product, the eXaminer 3DX(TM) 6000, to a supplier with a broad array of airport and security products, system engineering, manufacturing and product support to better serve this growing industry. As a result, L-3 will be able to integrate its technologies and products to the benefit of its domestic and international customers. Additionally, the acquisition provides