L-3 Acquires ForceX, Inc.
L-3 Communications (NYSE:LLL) announced today that on October 13, 2015 it acquired ForceX, Inc., which the company has renamed L-3 ForceX. L-3 ForceX will be incorporated into L-3’s Integrated Sensor Systems (ISS) sector within the Electronic Systems business segment. Terms of the transaction have not been disclosed, but the acquisition is expected to be immediately accretive.
Based in Nashville, Tenn., L-3 ForceX is an industry leader specializing in ISR mission management software and geospatial application technology programs, offering an array of advanced products, including cueing system software, hardware and video algorithms, and wide-area sensor integration solutions and software. The company’s proprietary processing, exploitation and dissemination (Tactical PED) capability provides an integrated tactical operational picture, allowing users to make critical decisions in real time. The business also provides training courseware, materials and turnkey classroom training solutions for its customers and currently supports several key Department of Defense ISR initiatives and classified programs. Its customer base includes the U.S. Air Force, U.S. Special Operations Command, the Naval Surface Warfare Center and a variety of DoD agencies. The business also has existing relationships with several defense prime contractors as well as numerous L-3 business units. L-3 ForceX is a highly customer-focused business that is expected to accelerate the overall growth prospects of the ISS sector.
“We have been strategically repositioning our portfolio by adding new capabilities that are aligned with our customers’ priorities, and we are pleased to announce this acquisition, which furthers this objective,” said Michael T. Strianese, L-3’s chairman, president and chief executive officer. “ForceX complements L-3’s core business, enhancing our product and system capabilities to compete in new markets, and expands our customer base.”
L-3 ForceX is expected to add approximately $30 million in sales for the year ending December 31, 2016. Goodwill and other intangible assets from this acquisition are expected to be deductible for income tax purposes.
Headquartered in New York City, L-3 employs approximately 45,000 people worldwide and is a prime contractor in aerospace systems and national security solutions. L-3 is also a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms. The company reported 2014 sales of $12.1 billion.
To learn more about L-3, please visit the company’s website at www.L-3com.com. L-3 uses its website as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company’s website and is readily accessible.
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