12 Sep 02. L-3 Communications Inc. (NYSE:LLL – News) said on Thursday it signed a deal to buy Northrop Grumman Corp’s (NYSE:NOC – News) Electron Devices unit and its San Diego-based Displays-Navigation Systems businesses.
Terms of the deal were not disclosed. Quarterdeck Investment Partners LLCadvised Northrop on the deal, Northrop said. L-3, which makes products such as bomb detection equipment for airports, said it expected the new businesses would add about $140m in sales and 4 cents per share in profit to the company in 2003. New York-based L-3 said it expects the sale to close in November. The units employ about 900 Northrop employees. The Electron Devices unit makes microwave devices for military equipment and the Displays Navigation Systems unit builds computer and electronic systems for both government and commercial customers.
Shares of L-3, which have been boosted by increased government spending on airport security, closed at $55.81 on Wednesday on the New York Stock Exchange. Shares of Northrop, closed at $125.83, also on the NYSE.