L-3 Communications is set to acquire Canadian electro-optical sensor specialist Wescam as the US company builds its intelligence, surveillance and reconnaissance capability through acquisitions. The cash deal is worth C$188 million ($118 million) and is set to close by year-end.
Burlington, Ontario-based Wescam launched a review of strategic alternatives in May and says L-3's offer will increase the company's access to the US defence market. Adding a strong electro-optical company was "one of our key strategic acquisition goals", says L-3 chairman and chief executive Frank Lanza.
The Wescam acquisition is expected to add about $100 million to L-3 sales in 2003. The company produces stabilised electro-optical and infrared surveillance and targeting systems for maritime patrol aircraft, unmanned air vehicles and other platforms. The buy will boost L-3's Integrated Systems business, which modifies special-mission aircraft.
L-3 is also to acquire Northrop Grumman's Electron Devices and Ruggedized Displays units, both former Litton businesses. The deal is expected to add $140 million to L-3's sales. California-based Electron Devices produces microwave products for missiles, decoys and radars.
Source: Flight International
