Leidos initiates $1B acquisition of L3Harris Technologies
The transaction is anticipated to be complete by the end of the second quarter.
Reston-based government contractor Leidos will acquire L3Harris Technologies’ Security Detection and Automation businesses for $1 billion in cash in a deal that is expected to close in the second quarter of 2020, the company announced Tuesday.
The boards of directors for both companies unanimously approved the transaction.
Headquartered in Tewksbury, Massachusetts, and Luton, England, the L3Harris businesses have a combined 1,200 employees. The businesses build screening products, tray return systems and other automated products for airports, transportation and government services. In total, the businesses have deployed more than 20,000 systems. Specific products include checkpoint CT scanners, people scanners, explosives trace detectors, checked baggage screeners and automated tray return systems.
“The acquisition of these businesses will help accelerate our growth and innovation and enable us to offer the market a comprehensive security platform,” Leidos Chairman and CEO Roger Krone said in a statement.
For this acquisition, Leidos used Credit Suisse Securities (USA) LLC as its financial adviser, law firms Fried, Frank, Harris, Shriver, & Jacobson LLP and DLA Piper as legal advisers and PricewaterhouseCoopers as an operations and accounting adviser.
On Feb. 3, Leidos announced its $1.65 billion cash acquisition of Dynetics Inc., a Huntsville, Alabama-based national security services provider.