May 6, 2020 | International, C4ISR
(Reston, Va.) May 4, 2020–Leidos (NYSE:LDOS), a FORTUNE® 500 science and technology leader, today announced that it has completed the acquisition of L3Harris Technologies' (“L3Harris”) Security Detection and Automation businesses, for approximately $1 billion in cash. The transaction was previously announced on Feb. 4, 2020.
The acquired businesses provide airport and critical infrastructure screening products, automated tray return systems and other industrial automation products. They will operate within the Leidos Civil Group, led by Jim Moos, Civil Group president. Combined with Leidos' existing cargo and baggage screening product lines, Leidos now goes to market with a global security detection and automation footprint of more than 24,000 systems deployed in more than 120 countries. Leidos will continue to serve global customers in the aviation, transportation, government and critical infrastructure markets.
“In line with our mission of making the world safer, healthier and more efficient, this security detection and automation acquisition furthers our important work in the secure movement of people and commerce globally,” said Leidos Chairman and CEO Roger Krone. “We are excited to support critical infrastructure wherever it is needed, and to help transform the global security marketplace.”
“This deal expands our scope and scale in securing ports and borders, enhancing passenger movement in airports of the future, and fortifying infrastructure for national security and public venues,” said Moos. “We are pleased to welcome more than 1,200 L3Harris employees around the world to the Leidos team, who share our deep commitment of providing our customers with a fully-integrated security technology ecosystem.”
Compelling Strategic and Operational Benefits
Transaction Details
The transaction is expected to be immediately accretive to Leidos' revenue growth, EBITDA margins, and non-GAAP diluted earnings per share upon closing.
Cash consideration of approximately $1.0 billion plus related transaction costs was funded through a combination of excess cash on hand and a two-year term loan.
Advisors
Leidos retained Credit Suisse Securities (USA) LLC as financial advisor, and Fried, Frank, Harris, Shriver, & Jacobson LLP and DLA Piper as legal advisors in connection with the transaction.
About Leidos
Leidos is a Fortune 500® information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, homeland security, civil, and health markets. The company's 37,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $11.09 billion for the fiscal year ended January 3, 2020. For more information, visit leidos.com.
Cautionary Statement Regarding Forward-Looking Statements
The forward-looking statements contained in this release involve risks and uncertainties that may affect Leidos' operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission (the “SEC”). Without limiting the foregoing, forward-looking statements often use words such as “believe,” “anticipate,” “plan,” “expect,” “estimate,” “intend,” “seek,” “project,” “target,” “goal,” “may,” “will,” “would,” “could,” “should,” “can,” “continue” and other words of similar meaning in connection with a discussion of the transaction or future operating or financial performance or events. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the expectations of Leidos will be realized. This release also contains statements about the acquisition of the security detection and automation businesses of L3Harris that are based on assumptions currently believed to be valid but involve significant risks and uncertainties, many of which are beyond Leidos' control, which could cause Leidos' actual results to differ materially from these forward-looking statements with respect to the transaction, including, anticipated tax treatment, ability to retain key personnel, the dependency of the transaction on market conditions and the impact of a change in market conditions on the value to be received in the transaction, unforeseen liabilities, future capital expenditures, uncertainty as to the expected financial condition and economic performance of the company following the closing, including future revenues, expenses, earnings, indebtedness, losses, prospects, business strategies for the management, expansion and growth of the company following the closing, Leidos' ability to integrate the businesses successfully and to achieve anticipated synergies, the risk that disruptions from the transaction will harm Leidos' business and the impact of the COVID-19 outbreak. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Leidos' consolidated financial condition, results of operations or liquidity. For a discussion identifying additional important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see Leidos' filings with the SEC, including “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Leidos' annual report on Form 10-K for the year ended January 3, 2020, and in its quarterly reports on Form 10-Q which are available at http://www.Leidos.com and at the SEC's web site at http://www.sec.gov. The forward-looking statements contained in this release are made only as of the date of this release and are based on the information available to Leidos as of the date of this release. Readers are cautioned not to put undue reliance on forward-looking statements. Leidos assumes no obligation to provide revisions or updates to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
View source version on Leidos : https://www.leidos.com/insights/leidos-completes-acquisition-l3harris-technologies-security-detection-and-automation
August 9, 2023 | International, Land
As RAFAEL’s local Polish industrial partner, MESKO has already manufactured SPIKE Missiles for the Polish MOD, and this will be the third such deal involving the SPIKE Missile Family.
February 23, 2023 | International, Land
The carmaker's defense subsidiary is banking on its commercial heritage to find military customers.
April 30, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
ARMY FN America LLC, Columbia, South Carolina (W56HZV-20-D-0024); and Colt's Manufacturing Co. LLC, West Hartford, Connecticut (W56HZV-20-D-0025), will compete for each order of the $383,311,941 firm-fixed-price contract to provide M16A4 rifles for Foreign Military Sales (Afghanistan, Grenada, Iraq, Lebanon and Nepal). Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of April 28, 2025. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. Travis Association for the Blind, Austin, Texas, was awarded a $12,483,935 modification (P00004) to contract W56HZV-18-C-0067 to support repairing, cleaning, warehousing and distribution of organizational clothing and individual equipment. Bids were solicited via the internet with one received. Work will be performed in Austin, Texas, with an estimated completion date of April 30, 2021. Fiscal 2020 operations and maintenance, Army funds in the amount of $12,483,935 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity. Cepheid, Sunnyvale, California, was awarded a $9,933,000 firm-fixed-price contract (W911QY-20-P-0154) for up to 333,000 COVID-19 assays. Bids were solicited via the internet with one received. Work will be performed in Sunnyvale, California, with an estimated completion date of March 31, 2021. Fiscal 2020 operations and maintenance, Army funds in the amount of $9,933,000 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. (Awarded April 27, 2020) Manson Construction Co., Seattle, Washington, was awarded a $7,675,998 modification (P00002) to contract W912P8-20-C-0010 to exercise option hours for the dredge Glenn Edwards. Work will be performed in Plaquemines Parish, Louisiana, with an estimated completion date of Sept. 30, 2020. Fiscal 2020 civil operations and maintenance funds in the amount of $7,675,998 were obligated at the time of the award. U.S. Army Corps of Engineers, New Orleans, Louisiana, is the contracting activity. DEFENSE LOGISTICS AGENCY American Water Military Services LLC, Camden, New Jersey, has been awarded a maximum $70,000,000 modification (P00001) to a 50-year contract (SP0600-19-C-8327) with no option periods for additional wastewater utility system construction, repair and replacement work at Target Hill Wastewater Treatment Plant, U.S. Army Garrison West Point, New York. This is a fixed-price contract. Locations of performance are New Jersey and New York, with a Sept. 30, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2016 through 2020 Army military construction funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. Raytheon Co., Andover, Massachusetts, has been awarded a maximum $13,688,190 firm-fixed-price, one-time purchase contract for radomes. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a two-year base contract with no option periods. Location of performance is Massachusetts, with a March 31, 2022, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 defense working capital funds. The contracting activity is Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA2-20-C-0023). UPDATE: Werres Corp., Frederick, Maryland (SPE8EC-20-D-0058) has been added as an awardee to the multiple-award contract for commercial material handling equipment, issued against solicitation SPE8EC-17-R-0002 and awarded June 9, 2017. AIR FORCE Raytheon Missile Systems, Tucson, Arizona, has been awarded a not-to-exceed $32,780,869 fixed-price-incentive-fee, undefinitized contract action for StormBreaker Lot 6 Contract Line Identification Number 6001 - All Up Round (AUR); Simmonds Precision Product and multicut. This contract provides for Simmonds Precision Product and multicut material and labor for parts used in a StormBreaker AUR. Work will be performed in Tucson, Arizona, and is expected to be completed by Nov. 21, 2022. This award is the result of a sole-source acquisition. Fiscal 2020 missile procurement funds in the amount of $6,612,745 are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8672-20-C-0005). (Awarded April 28, 2020) NAVY Physical Optics Corp.,* Torrance, California, is awarded a $17,783,583 cost-plus-fixed-fee order (N68335-20-F-0001) against previously issued basic ordering agreement N68335-19-G-0041. This order provides non-recurring engineering for the production, test, integration and delivery of the T-45 Head-Up Display (HUD) and its associated internal software. Work will be performed in Torrance, California, and also provides airworthiness substantiation and supports the joint software support activity lab and government flight test demonstration for the HUD. This is a Small Business Innovation Research (SBIR) Phase III for research and development performed under the SBIR Topic Numbers N091-003, N152-096 and 04-A-A1.01. Work is expected to be complete by April 2022. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $1,166,435; fiscal 2019 fiscal aircraft procurement (Navy) funds in the amount of $16,387,148; and fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $230,000 will be obligated at time of award, $230,000 of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity. Vectrus J&J Facilities Support LLC, Colorado Springs, Colorado, is awarded a $17,090,690 indefinite-delivery/indefinite-quantity contract for base operating support (BOS) services at Naval Air Station Patuxent River, Patuxent River, Maryland; Webster Field, St. Inigoes, Maryland; Solomons Annex, Solomons, Maryland; and Point Lookout, St. Mary's County, Maryland. The maximum dollar value including the base period and seven option periods is $190,007,916. All work will be performed in Calvert County (8%) and St. Mary's County (92%), Maryland. The BOS services to be performed include: general information, management and administration, airfield facilities, facilities support including facility management; facility investment; integrated solid waste management; other (swimming pools); special events; and utility management, wastewater, water and environmental services. Work is expected to be complete by June 2028. No funds will be obligated at time of award. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $17,090,690 for recurring work will be obligated on an individual task order issued during the base period. This contract was competitively procured via the Navy Electronic Commerce Online website, and seven proposals were received. The Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia, is the contracting activity (N62470-20-D-0009). CFM International, West Chester, Ohio, is awarded a $13,582,486 modification (P00172) to a previously awarded firm-fixed-price contract (N00019-18-C-1071). This modification exercises an option to procure one CFM56-7B27AE commercial-off-the-shelf engine for the government of the United Kingdom. Work will be performed in Villaroche, France (50%); and Durham, North Carolina (50%), and is expected to be complete by April 2021. Foreign Military Sales funds in the amount of $13,582,486 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. DEFENSE COMMISSARY AGENCY Jones Lang LaSalle Americas Inc., Chicago, Illinois, is being awarded a $9,940,010 hybrid-fixed-price, time and materials schedule task order for whole facilities maintenance at various commissaries located in the U.S. and its territories. The task order is for a one-year base period beginning July 1, 2020. The task order includes four one-year option periods. If all options are exercised, the task order will be completed June 30, 2025. Quoters were solicited on the General Services Administration eBuy website, available to 03FAC contract holders, five quotes were received. The Defense Commissary Agency, Enterprise Acquisition Division, Construction Design Branch, Joint Base San Antonio, Lackland, Texas, is the contracting activity (HDEC03-20-F-0028). Jones Lang LaSalle Americas Inc., Chicago, Illinois, is awarded a $9,632,375 hybrid-fixed- price, time and materials schedule task order for whole facilities maintenance at various commissaries located in the U.S. and its territories. The task order is for a one-year base period beginning July 1, 2020. The task order includes four one-year option periods. If all four option periods are exercised, the task order will be completed June 30, 2025. Quoters were solicited on the General Services Administration eBuy website, available to 03FAC contract holders, five quotes were received. The Defense Commissary Agency, Enterprise Acquisition Division, Construction Design Branch, Joint Base San Antonio, Lackland, Texas, is the contracting activity (HDEC03-20-F-0027). Nelson Refrigeration Inc., La Vista, Nebraska, is awarded an $8,840,133 hybrid-fixed-price, time and materials schedule task order for whole facilities maintenance at various commissaries located in the U.S. and its territories. The task order is for a one-year base period beginning July 1, 2020. The task order includes four one-year option periods. If all four option periods are exercised, the task order will be completed June 30, 2025. Quoters were solicited on the General Services Administration eBuy website, available to 03FAC contract holders, five quotes were received. The Defense Commissary Agency, Enterprise Acquisition Division, Construction Design Branch, Joint Base San Antonio, Lackland, Texas, is the contracting activity (HDEC03-20-F-0033). J&J Worldwide Services, Austin Texas, is awarded a $7,822,654 hybrid-fixed price, time and materials schedule task order for whole facilities maintenance at various commissaries located in the U.S. and its territories. The task order is for a one-year base period beginning July 1, 2020. The task order includes four one-year option periods. If all four option periods are exercised, the task order will be completed June 30, 2025. Quoters were solicited on the General Services Administration eBuy website, available to 03FAC contract holders, five quotes were received. The Defense Commissary Agency, Enterprise Acquisition Division, Construction Design Branch, Joint Base San Antonio, Lackland, Texas, is the contracting activity (HDEC03-20-F-0030). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2170148/source/GovDelivery/