Saturday, February 20, 2010

L-3 Agrees to Acquire Insight Technology, Expands Electro-Optical and Night Vision Business

Defense News ~ NEW YORK--February 19, 2010, (BUSINESS WIRE)--L-3 Communications (NYSE: LLL - News) announced today that it has entered into an agreement to acquire Insight Technology Incorporated (Insight). Insight develops and manufactures mission critical night vision and electro-optical equipment including laser aiming and illumination devices, laser rangefinders, laser markers and designators, night vision goggles and monoculars, and thermal imaging systems. Headquartered in Londonderry, New Hampshire, Insight employs approximately 1,100 people. Insight’s products are used by the U.S. military, federal law enforcement agencies and allied nations. The purchase price was not disclosed and will be funded with cash on hand.
The acquisition is anticipated to be completed in the second quarter of 2010, subject to customary closing conditions and regulatory approvals, and will be structured as an asset purchase for income tax purposes. Insight is expected to generate approximately $290 million of sales for the twelve months ending December 31, 2010. Before giving effect to the present value of tax related benefits of the transaction and expected synergies, the purchase price represents a multiple of approximately nine times estimated 2010 earnings before interest, taxes, depreciation and amortization (EBITDA). The acquisition is expected to be immediately accretive to L-3’s results of operations.
“By combining Insight’s outstanding people and innovative products with our existing portfolio, we add important new capabilities to L-3,” said Michael T. Strianese, chairman, president and chief executive officer. “Insight’s entrepreneurial culture and dedication to customer needs make this a natural fit and is a great example of L-3 successfully executing its acquisition strategy.”
Pending the successful completion of this transaction, Ken Solinsky, Insight’s founder and president, will become president of L-3’s newly created Warrior Systems Sector. Mr. Solinsky will report to James W. Dunn, senior vice president and president of L-3’s Sensors and Simulation Group. The Warrior Systems Sector will include Insight and L-3’s existing electro-optical/infrared (EO/IR) businesses currently addressing the warrior systems market and will be reported in L-3’s Electronic Systems segment.
“Insight expands and broadens L-3’s warrior systems capabilities, a key strategic growth area for L-3,” added Mr. Dunn. “Leveraging Insight’s industry leading products, engineering skills and manufacturing agility, we can deliver higher performing systems, with faster speed and greater value, to our customers.”
Mr. Solinsky concluded, “Insight and select L-3 businesses have been working together for nearly 20 years. We know each other well and have the utmost respect for each other’s capabilities. This combination enables us to build on these relationships. By combining advanced components, technologies and system capabilities, L-3’s Warrior Systems Sector will be able to provide advanced night vision and electro-optical systems to our nation’s warfighters and homeland defenders in a highly effective manner. These dedicated individuals deserve the best equipment, delivered on time, with high quality and reasonable prices. I am pleased and honored to have been chosen to lead the Warrior Systems Sector and pledge to do my best in support of our warfighters.”
Headquartered in New York City, L-3 Communications employs over 66,000 people worldwide and is a prime 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 2009 sales of $15.6 billion.
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Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “will,” “could” and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company’s Safe Harbor Compliance Statement for Forward-looking Statements included in the company’s recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements
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