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
July 28, 2023 | International, Aerospace
This program includes 129 vehicles across two iants and will be ivered under an accelerated schedule, in alignment with the Australian Army's Defence Strategic Review.
January 8, 2019 | International, Naval, C4ISR
By: Justin Lynch They have been hacked, tricked and stolen from. Now the message is clear -- no more. The Navy is looking to support research in 36 areas that can help protect weapons systems from cyberattacks, Naval Air Systems Command said in a Jan. 7 update to a broad agency announcement. “It's not necessarily cutting edge research, but it is the first step in cybersecurity quality control that should have already been done,” said Bryson Bort, the founder and chief executive officer of Scythe, a cybersecurity platform. The Navy had admitted as much. Research into protecting the department's weapons comes amid reports that the American military suffers from sustained cyberattacks. In December, an Inspector General report found that some in the Pentagon were not taking basic cybersecurity steps to protect its ballistic missile system. Although the Pentagon's weapons are worth roughly $1.66 trillion, an October report from the Government Accountability Office found that “nearly all” American missiles, jets, ships and lethal equipment in development are vulnerable to cyberattacks. The announcement comes after Congress has mandated the Pentagon address its cyber vulnerabilities. Three of the research areas the Navy is interested are commonly described as the pillars of strong cybersecurity, no matter the institution. They include: Dynamic reconfiguration In an effort to confuse attackers, the Navy wants to research “dynamic reconfiguration.” The National Institute of Standards and Technology defines the term as “changes to router rules, access control lists, intrusion detection/prevention system parameters, and filter rules for firewalls and gateways.” "Organizations perform dynamic reconfiguration of information systems, for example, to stop attacks, to misdirect attackers, and to isolate components of systems, thus limiting the extent of the damage from breaches or compromises,” NIST officials wrote. Research by the University of Maryland's Christian Johnson found that pairing predictive analytics with dynamic reconfiguration tactics, the new approach can lead to the "successful development of learning models that identify specific classes of malware such as ransomware,” Johnson wrote in a paper for the RSA conference. Deception tactics Experts have long used strategies of physical war in digital battles, including with the use of denial and deception tactics. The Navy wants to boost understanding of this area to better secure its weapons systems. In 2015, researchers at MITRE, which conducts federally funded research, advocated for a 10-step process for planning and executing deception operations. “Leveraging classical denial and deception techniques to understand the specifics of adversary attacks enables an organization to build an active, threat-based cyber defense,” a team of researchers wrote. But the Intelligence Advanced Research Project Activity, the intelligence community's research arm, says that the use of deceptive software and hardware in cybersecurity is still in its infancy. “Many techniques lack rigorous experimental measures of effectiveness,” the organization said, adding that “information is insufficient to determine how defensive deception changes attacker behavior.” Artificial intelligence If there was a common denominator of the federal government's investment in cybersecurity it is the use or artificial intelligence. The Navy has embraced artificial intelligence since its Task Force Cyber Awakening project in 2015. “We see that the more we automate our networks and the more we use machines to do the heavy lifting, the better. Our brains do not have the intellectual capacity to process all of that information,” Rear Adm. Danelle Barrett, Navy Cyber Security Division Director,told Defense Systems, a trade publication, in a 2017 interview. More than half of the challenges and research opportunities announced by IARPA in 2018 involved machine learning, according to an analysis by Fifth Domain. Cyber Command has embraced the technology in a short time period, Capt. Ed Devinney, director of corporate partnerships at the body, said during the November Cyber Con conference hosted by Fifth Domain. “If you talked to anyone at the command two or three years ago about a system that would be all autonomous, you probably wouldn't get much traction. But I think there is a growing understanding and consensus that we need to operate at machine speed, especially when talking about active defense of the network,” Devinney said. He said that everyone likes to use the phrases “artificial intelligence” and “machine learning,” however “there aren't that many people who do AI very well.” https://www.fifthdomain.com/dod/2019/01/07/3-ways-the-navy-wants-to-protect-its-weapons-from-cyberattacks
November 26, 2023 | International, Aerospace
Opinion: The contracting vehicle is designed to enable federal agencies to procure mission-critical telecommunications, infrastructure and technology services.