A year after its merger with Lockheed Martin was called off, US government information and intelligence services specialist Titan is to be acquired by L-3 Communications for $2.65 billion.
As part of the agreement, Titan is to settle lawsuits related to the failed merger with Lockheed and the bribery probe that led to the deal’s collapse. The Titan acquisition is L-3’s biggest, and is forecast to add $2.7 billion to its sales next year, lofting the New York-based company into the top 10 of aerospace and defence businesses with revenues of over $10 billion.
Pointing to the high proportion of Titan’s 12,000 employees with US government security clearances, L-3 expects synergies with its command and control, intelligence and surveillance, naval warfare, technical services and network communications businesses.
Lockheed’s $2.2 billion take-over of Titan was called off last year after Titan was unable to reach a settlement with the US Department of Justice and Securities and Exchange Commission. In March, the San Diego-based defence contractor agreed to pay $28.5 million to settle charges of bribing the president of Benin.
Under the new deal, $67.4 million has been set aside to pay for agreed settlements of lawsuits related to the federal investigation and failed merger.
GRAHAM WARWICK/WASHINGTON DC
Source: Flight International
