L-3 Communications Acquires Ship Analytics, Inc.
NEW YORK--(BUSINESS WIRE)--Jan. 21, 2003
L-3 Communications (NYSE:LLL) announced today that it acquired Ship Analytics, Inc. on December 19, 2002.
The purchase price was approximately $11.4 million (including approximately $4.7 million in assumed debt), with additional consideration of up to approximately $20.2 million dependent upon certain contingencies including Ship Analytics' financial performance in 2003, 2004 and 2005. This acquisition is minimally accretive and is expected to contribute approximately $40 million to L-3's sales in 2003.
Headquartered in North Stonington, CT, Ship Analytics produces CRISIS management software, providing command and control for homeland security applications. The company also designs, manufactures and operates real-time simulation systems for critical shipboard operations. Their clients include commercial maritime and naval clients around the world. Products include Full Mission Shiphandling Simulators, Radar/ARPA Simulators, Liquid Cargo Handling Simulators (LCHS) and Global Maritime Distress and Safety System Simulators (GMDSS).
"Ship Analytics has a very solid business with many overseas clients that meshes very well with L-3 simulation products and our international presence and strong position in crisis management for homeland security and training and simulation for first responders," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "In addition, its ship simulation and related training complement our total capability in our existing simulation business."
"Ship Analytics has a franchise business in its CRISIS management software," continued Lanza. "It is an easy-to-use package that offers decision makers a wide range of critical information when they need it. When you combine this package with our crisis management capabilities, L-3 can offer an ideal system for state and FEMA (Federal Emergency Management Agency) locations. In fact, we recently successfully combined the efforts of L-3 and Ship Analytics to work on a model homeland defense program for the state of South Carolina, and we see many opportunities to expand this business both domestically and internationally."
"Ship Analytics adds another key element to our growing range of homeland security businesses," added Lanza. "From a very small business in explosive detection systems in 1997, L-3 has substantially expanded its offerings in the homeland security sector." Lanza noted that these offerings include a complete range of airport security products and support, cargo security for shipping, intrusion detection for government and commercial facilities, port and border security, secure communications, biometric systems and border detection systems. In addition, L-3 offers crisis management consulting and simulation and training for first responders in emergencies.
In a related matter, L-3 recently appointed Larry Schwartz, who has over 30 years in the defense industry as a senior executive, as vice president of Homeland Security, along with other responsibilities. He will coordinate efforts across L-3 to market the full range of product and services capabilities to law enforcement and government agencies and to form partnerships in the development of new opportunities.
Headquartered in New York City, L-3 Communications is a leading merchant supplier of Intelligence, Surveillance and Reconnaissance (ISR) products, secure communications systems and products, avionics and ocean products, training products, microwave components and telemetry, instrumentation, space and wireless products. Its customers include the Department of Defense, selected U.S. government intelligence agencies, aerospace prime contractors and commercial telecommunications and wireless customers.
To learn more about L-3 Communications, please visit the company's Web site at www.L-3Com.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-Looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission.
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|Date:||Jan 21, 2003|
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