L-3 Communications has announced it has entered into an agreement to acquire Northrop Grumman's Electro-Optical Systems (EOS) business for $175 million in cash. EOS is a leader in night vision technology and electro-optical products for military, commercial and public safety customers. The EOS business generated approximately $190 million of sales for the year ended Dec. 31, 2007, and is expected to be immediately accretive to L-3's earnings. The acquisition should be completed in the second quarter of 2008, subject to standard regulatory approvals.
"Our strategy is to acquire businesses that expand our core offerings," said James W. Dunn, president of L-3's Sensors and Simulation Group. "There is strong demand worldwide for image-enhancing products, and the addition of EOS' products and technologies enhances our ability to meet that need. Including EOS, L-3's EO/IR businesses will generate approximately $800 million in annual sales, with growth exceeding 10 percent."
L-3 currently offers fully integrated imaging solutions, including EO/IR (electro-optical/infrared) sensors, high-definition turrets, tactical sights and laser designators for air, land and sea applications. EOS' portfolio includes night vision goggles, weapons sights, driver viewers, image intensification tubes and applied optics products. The business will be integrated into L-3's Specialized Products segment within the Sensors and Simulation Group.
Source: Press Release
