L-3 Signs Definitive Agreement to Sell Its National Security Solutions Business to CACI
L-3 Communications (NYSE:LLL) announced today that it has entered into a definitive agreement under which it will sell its National Security Solutions (NSS) business to CACI International Inc for $550 million in cash.
“L-3 is in the midst of a business transformation aimed at reshaping our portfolio, strengthening our focus on markets where we have leading positions, and improving our top-line growth and margin profile,” said Michael T. Strianese, L-3’s chairman and chief executive officer. “The sale of L-3 NSS to CACI aligns directly with this commitment and further sharpens our focus on our higher-returning defense electronics, communications and ISR businesses. The proceeds from the sale will provide L-3 with additional flexibility to continue focusing on a disciplined and balanced capital allocation strategy to drive shareholder value and enhance the market-leading products and systems we provide to our customers.”
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Mr. Strianese added, “We also continue to evaluate our portfolio for additional actions that will enable us to improve L-3’s business profile and provide us with the best opportunity to improve the organic sales growth and margin outlook of our business.”
The transaction is anticipated to be completed in the first quarter of 2016, subject to customary closing conditions and regulatory approvals. The NSS results of operations are expected to be reported as discontinued operations beginning in the fourth quarter of 2015.
L-3 National Security Solutions (NSS) provides enterprise and mission information technology services, intelligence operations support and operational infrastructure support.
Deutsche Bank Securities Inc. served as financial advisor to L-3 in connection with the transaction. Simpson Thacher & Bartlett LLP served as legal advisor to L-3.
Source : L-3 Communications - view original press release