L-3 to Sell Cyber Unit to CACI
December 08 2015 - 9:40AM
Dow Jones News
L-3 Communications Holdings Inc. agreed to sell its
cybersecurity unit to CACI International Inc. for $550 million,
following a review of the segment.
L-3 Chairman and Chief Executive Michael T. Strianese said in
prepared remarks Tuesday that the divestiture of its National
Security Solutions unit will allow the company to sharpen its focus
on its more profitable defense electronics, communications and
surveillance and reconnaissance systems businesses.
CACI said the deal, expected to close by the end of March, is
expected to add roughly $1 billion in annual revenue and expand the
company's presence in enterprise information technology,
intelligence services and key market areas. The acquisition is
expected to add to CACI's performance in its current fiscal year
that ends in March, and to boost per-share earnings by at least 10%
the following fiscal year.
L-3 in July said its was evaluating the future of its National
Security unit, which provides cyber services for government and
commercial customers. At the time L-3 also said its was evaluating
a business that converts big commercial jets for VIPs.
L-3 in October said it swung to a loss in its third quarter
following a big write-down of the cyber unit. Like its rivals, L-3
has had to grapple with lower government spending.
Mr. Strianese said Tuesday the company would continue to
evaluate its portfolio to look for opportunities to improve its
sales and margins but didn't provide details.
L-3 said it expects sales of $10.4 billion this year, excluding
the National Security segment.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
December 08, 2015 09:25 ET (14:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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