“…the acquisition will further strengthen Leidos’ technological capabilities in a market area where sophisticated technologies like biometrics are playing an increasingly important role.”
Government-focused technology solutions giant Leidos has acquired L3Harris Technologies’ Security Detection and Automation business in a cash deal valued at about $1 billion. The latter organization specializes in security screening solutions for airports, and has been folded into the Leidos Civil Group.
In announcing the acquisition’s closure, Leidos explained that the deal offers it an expanded product portfolio in the high-growth global security market, and increased international reach with more diversified revenue sources. It also suggested that the acquisition will further strengthen Leidos’ technological capabilities in a market area where sophisticated technologies like biometrics are playing an increasingly important role.
“The integration of these new businesses into a comprehensive portfolio enables Leidos to leverage its core technical strengths, in-depth biometrics capabilities, and global sales channels to rapidly develop and deliver new solutions,” the company said.
Leidos says that the transaction is expected to immediately add to its revenue growth, EBITDA margins, and non-GAAP diluted earnings per share. With respect to Leidos’ international security products revenue, the deal is expected to deliver a six-fold increase.
“This deal expands our scope and scale in securing ports and borders, enhancing passenger movement in airports of the future, and fortifying infrastructure for national security and public venues,” commented Leidos Civil Group President Jim Moos. “We are pleased to welcome more than 1,200 L3Harris employees around the world to the Leidos team, who share our deep commitment of providing our customers with a fully-integrated security technology ecosystem.”
The transaction was financed through “excess cash on hand and a two-year term loan,” the company said.
May 5, 2020 – by Alex Perala