L-3 Communications has entered into an asset purchase agreement to acquire the explosives trace detection (ETD) business of Implant Sciences for $117.5 million in cash, plus the assumption of specified liabilities.
L-3 intends to finance the asset purchase using its existing cash on hand.
Implant has recently entered into Chapter 11 Bankruptcy protection, and the consummation of the APA will be subject to approval of the U.S. Bankruptcy Court.
Following a successful acquisition, the assets will be integrated into L-3’s Security & Detection Systems division within its Electronic Systems business segment.
The company’s ETD products have received approvals and certifications from several international regulatory agencies, including the TSA in the U.S., ECAC in Europe and the Ministry of Public Safety in China.
In September 2016, the TSA placed a delivery order for 1,353 of the QS-B220 systems and related supplies.
“L-3’s leadership across a broad scope of security and detection technologies will be enhanced by these assets, supporting our strategy to provide our customers with scalable, integrated solutions that meet the evolving global demand,” said Michael T. Strianese, L-3’s Chairman and Chief Executive Officer.
(Learn More about L-3 SDS Solutions, courtesy of L-3 and YouTube)
Based in Wilmington, Massachusetts, Implant filed for bankruptcy protection pursuant to Chapter 11 of the U.S. Bankruptcy Code on October 10, 2016.
L-3 will be, subject to U.S. Bankruptcy Court approval, entitled to a breakup fee and expense reimbursement if it does not prevail as the successful bidder at any subsequent auction in accordance with the terms of the APA. L-3’s role as purchaser and the sale itself are subject to approval by the U.S. Bankruptcy Court.
Headquartered in New York City, L-3 employs approximately 38,000 people worldwide and is a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms.
L-3 is also a prime contractor in aerospace systems, with reported sales for 2015 of $10.5 billion.
L-3 Security & Detection Systems (L-3 SDS) solutions are used by the aviation and transportation industries, regulatory and customs authorities, government and law enforcement agencies, and commercial and other secure facilities.
Applications include the screening of people, vehicles, baggage, cargo and packages for explosives, firearms, drugs, contraband and corporate assets.
For more than 30 years, L-3 SDS has developed and manufactured cutting-edge products using advanced technologies that include networking; 3-D computed tomography; automated, conventional and high-energy X-ray; radiation detection; active millimeter wave imaging; metal detection; and energetic trace explosives detection.