Leidos (NYSE: LDOS) has finalized its acquisition of security detection and automation businesses of L3Harris Technologies (NYSE: LHX) for approximately $1 billion in cash.
Jim Moos, president of Leidos’ civil group, will oversee the acquired businesses, which operate with over 1,200 employees combined and provide automated tray return systems, airport screening products and other industrial automation platforms to customers in the government, critical infrastructure, transportation and aviation markets, Leidos said Monday.
“In line with our mission of making the world safer, healthier and more efficient, this security detection and automation acquisition furthers our important work in the secure movement of people and commerce globally,” said Roger Krone, chairman and CEO of Leidos and a 2020 Wash100 Award recipient. “We are excited to support critical infrastructure wherever it is needed, and to help transform the global security marketplace.”
The deal, which was first announced in early February, allows Leidos to expand its product portfolio in the global security and detection market and broaden customer penetration into 75 additional countries as well as leverage biometrics capabilities, core technical strengths and global sales channels to accelerate the development and delivery of new platforms.
Leidos used a two-year term loan and existing cash on hand to fund the transaction, which is expected to be accretive immediately to the firm’s earnings before interest, tax, depreciation and amortization margins, revenue growth and non-GAAP diluted earnings per share upon completion.
Credit Suisse Securities (USA) served as Leidos’ financial adviser in the deal, while DLA Piper and Fried, Frank, Harris, Shriver & Jacobson LLP acted as the company’s legal advisers.
About The Wash100
This year represents our sixth annual Wash100 Award selection. The Wash100 is the premier group of private and public sector leaders selected by Executive Mosaic’s organizational and editorial leadership as the most influential leaders in the GovCon sector. These leaders demonstrate skills in leadership, innovation, achievement, and vision.
Visit the Wash100 site to learn about the other 99 winners of the 2020 Wash100 Award. On the site, you can submit your 10 votes for the GovCon executives of consequence that you believe will have the most significant impact in 2020.
