L-3 Communications (NYSE: LLL) announced that it has acquired Geneva Aerospace, Inc., a leading provider of unmanned aerial vehicle (UAV) technology, and has agreed to acquire Global Communications Solutions, Inc. (GCS), a leading provider of portable satellite communications equipment and products. Both companies will be included in L-3′s Specialized Products segment.
Located in Dallas, TX, Geneva Aerospace designs technologies for UAVs, providing unprecedented autonomy, precision and control. The company has developed a portfolio of industry-leading products and services, including advanced flight control systems, communication systems, control stations, software and systems integration services. Customers include the U.S. Department of Defense (DoD) and major prime contractors.
L-3 acquired Geneva Aerospace on January 31, 2007. Now called L-3 Communications Geneva Aerospace, it is expected to generate annual sales of approximately $12 million for the year ending December 31, 2007 and to be slightly accretive to L-3′s earnings for 2007.
Located in Victor, NY, GCS is a leading provider of satellite communications (SATCOM) systems that integrate data, broadband internet, telephony, multimedia, audio, video and computer networking. Its customers include the DoD and Department of Homeland Security (DHS), as well as federal, state, local and commercial customers.
GCS is expected to generate annual sales of approximately $90 million for the year ending December 31, 2007. The acquisition is expected to be completed in the second quarter of 2007, subject to customary closing conditions, and to be accretive to L-3′s earnings for 2007.
“These are two niche acquisitions for L-3,” said Michael T. Strianese, President and Chief Executive Officer of L-3 Communications. “Geneva is a pioneer in UAV flight operations, with strong engineering talent and a number of successful products that will add substantial technology to our existing capabilities. Additionally, one important emerging market for Geneva will be the use of unmanned air systems in defense and homeland security applications in commercial airspace.”
“GCS is a leader in technologically advanced and easily deployed communications systems that are suitable for the demands of combat, natural disasters and other challenging environments,” said Mr. Strianese. “This is an important and growing market, as real-time intelligence gathering and sharing have become a high priority for military operations, special operations forces and homeland security first responders.”
Headquartered in New York City, L-3 Communications employs over 63,000 people worldwide and is a prime system contractor in aircraft modernization and maintenance, C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2006 sales of $12.5 billion.