GE wins $631 million U.S. defense contract: Pentagon

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  6 mai 2020 | International, C4ISR

  Leidos completes acquisition of L3Harris Technologies’ Security Detection and Automation Businesses creating a comprehensive, global security and detection portfolio

  (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 Expands Product Portfolio in High-Growth, Global Security Market: The closing of this acquisition creates a comprehensive and cohesive security detection platform by adding technologies including checkpoint CT scanners, people scanners, explosives trace detectors, checked baggage screeners, and automated tray return systems (ATRS) to Leidos' security detection portfolio. The combined solutions enhance the company's offerings in an evolving global security product market, which allows diversification beyond the federal budget and positions the company for long-term growth. Increased International Presence Diversifies Revenue: This business expands customer penetration across aviation, ports, borders, and critical infrastructure internationally and increases Leidos' international security products revenue more than six-fold. The deal brings Leidos products into 75 additional countries. Growth and Innovation Accelerated by Scale: The integration of these new businesses into a comprehensive portfolio enables Leidos to leverage its core technical strengths, in-depth biometrics capabilities, and global sales channels to rapidly develop and deliver new solutions. Technology investments across the combined portfolio will help accelerate innovation to address emerging and evolving threats and improve service efficiency for customers. 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

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  21 avril 2020 | International, Aérospatial

  Germany’s Defence Ministry is under the gun to name a Tornado replacement

  By: Sebastian Sprenger COLOGNE, Germany — You can count on Germany to stir the pot of nuclear weapons sharing amid a global pandemic. Such was the case in the past few days in a country that, armed with a superb health care system and a relatively low COVID-19 mortality rate, is seen as a model for managing the coronavirus crisis. But as of Sunday afternoon, the national security community was abuzz about a news report saying Defence Minister Annegret Kramp-Karrenbauer effectively promised her U.S. counterpart that the ministry will buy 45 F-18 jets from Boeing. The Der Spiegel report comes after news broke a few weeks ago that Berlin planned to acquire a mix of Airbus Eurofighter jets and Boeing F-18s for a smattering of air warfare jobs too demanding for the country's aging Tornado fleet. Those jobs include flying conventional fighter-bomber missions, jamming enemy air defenses and carrying U.S. nuclear-tipped gravity bombs to hypothetical World War III targets somewhere eastward, per NATO's so-called nuclear sharing deal. According to Der Spiegel, Kramp-Karrenbauer sent U.S. Defense Secretary Mark Esper an email last week detailing her ministry's wish to buy F-18s not only for the atomic mission — which comes as little surprise — but also for the electronic warfare role. That reported promise stung Eurofighter advocates — even those who might begrudgingly accept an American product for the nuclear mission — because Airbus has plans for a souped-up jamming plane that it wants to see in Germany's inventory. In short, the Eurofighter crowd wants nothing more than Berlin to pick a pure Eurofighter fleet, arguing that the F-18′s shelf life is expiring in U.S. budget planning anyway, and that the Boeing jet is no closer to nuclear weapons certification than any other aircraft. The German Defence Ministry has always signaled it will take into account industrial policy considerations in the Tornado-replacement question. So strongly did senior leaders believe in the idea of a keeping the European industrial base humming toward an eventual Franco-German aerial über-weapon that they nixed Lockheed Martin's F-35 from the competition. But keeping American aircraft entirely out of the loop has always seemed a nonstarter. A ministry spokesman on Monday said Kramp-Karrenbauer's missive to Esper was only meant to test the waters regarding America's ability to start delivering those planes when the actual acquisition program gets underway in a few years. A formal decision on replacing the Tornados had initially been expected by the end of March. But as the coronavirus crisis unfolded, that decision was pushed to after Easter. Kramp-Karrenbauer is expected to announce her plans before the parliamentary Defence Committee on Wednesday, where she is likely to face opposition from lawmakers of the SPD coalition partner. Until then, Germans have yet another puzzle to discuss, as an increasingly divisive debate unfolds here over reopening the country. https://www.defensenews.com/global/europe/2020/04/20/germanys-defence-ministry-is-under-the-gun-to-name-a-tornado-replacement/

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  29 avril 2019 | International, Aérospatial

  Australia Makes Moves to Grow its Defense Industry

  By Stew Magnuson GEELONG, Australia — Very little excites the aerospace industry and the media that covers it more than the announcement of a new jet fighter program. So when the curtain went up in a Boeing tent at Avalon — The Australian Air Show revealing a full-size model of a new robotic jet fighter, the camera flashes popped off as if it were a star on a Hollywood red carpet. “It is a red letter day,” Australian Minister of Defence Christopher Pyne said while standing in front of the Airpower Teaming System, Boeing's name for the loyal wingman jet fighter, an unmanned aircraft intended to fly in formation with the nation's F-35A joint strike fighters and F/A-18E/F Super Hornets. It was also an auspicious day because the unmanned system would be the first indigenously developed aircraft Australia produced since the CAC Boomerang fighter during World War II. The program makes a statement to the world that Australia is no longer content to be merely a buyer of military equipment, but has ambitions to be a developer and exporter as well, said Pyne. “This is all testament to the fact that we are undergoing our largest buildup of our military capability in our peacetime history — $200 billion over the next 10 years.” While Australia is still buying pricey F-35s from the United States, attack-class submarines from France and armored fighting vehicles from a European consortium, it wants a significant portion of that $200 billion to stay in the country and help it create aerospace and defense sector jobs, officials said. The nation last year released the 2018 Defense Industrial Capability Plan spelling out how it would build a “broader and deeper defense industrial base” over the next decade. “The government's goal by 2028 is to achieve an Australian defense industry that has the capability, posture and resilience to help meet Australia's defense needs,” the plan stated. One of its main goals is to turn the nation into an exporter of military goods rather than just an importer. The day before the airshow, U.S. and other foreign contractors gathered in nearby Melbourne to hear from State of Victoria and Defence Ministry officials about the new ways of doing business in Australia. Damien Chifley, executive director of the defense industry branch in the Australian Department of Defence, said the approach now is to partner. The country's defense contractors are predominantly medium to small companies who can't go it alone. They need help bringing their innovative ideas to prime contractors. If a U.S. or other foreign company wants to vie for an Australian contract it must now submit an “industry capability plan,” which spells out exactly how they will work with local firms to bring the project to fruition, Chifley said. “The idea is they go out the main gate with Australian industry,” he said. These plans are not offsets, which is the mechanism used by some nations to make contractors invest a certain amount of dollars in the local economy as a condition of winning a contract. However, these industry capability plans will be weighed by the contracting authority when selecting a winning proposal, he noted. Claire S. Willette, CEO of the Australian Defence Alliance, said in an interview that the nation's effort to bolster its aerospace and defense sector should be seen in light of its losses in manufacturing jobs — particularly the automotive industry — rather than security concerns. Australia wants a “sovereign capability to support itself” in the defense industrial sector, she said. “From a long-term sustainable economic perspective, you need to build something. You need to have a growth area,” said Willette, an American who served in the Pentagon for 20 years before moving to Australia. “Because we did have this burgeoning defense industry and because we have some really niche, high-tech areas of excellence, I think that [the government] saw that this was a natural fit and something they could grow off of,” she said. Australian government officials and locally based U.S. contractors at the airshow were eager to promote the nation as a spot where they can find the talent to develop programs. Boeing, by far, has the largest and longest presence with more than 90 years experience doing business in the country and some 5,000 employees in its defense and commercial sectors. It features two large research facilities — Boeing Research and Technology-Australia and Boeing Phantom Works International in Brisbane — where work on the robotic jet fighter will take place. The company invested $62 million in research and development in Australia in 2018, company officials said. “We're going to prove that we can do big, audacious programs like this here in Australia,” said Darren Edwards, vice president and managing director of Boeing Defence Australia. Meanwhile, Lockheed Martin and local officials touted the country's success in winning F-35 sustainment contracts. As a partner nation in the program, Australian contractors can compete globally with other F-35 customers for component maintenance contracts. They received 343 out of a possible 388 such contracts in the latest round, building on the 64 they had received in the first round. Australian contractors have received a total of $1.3 billion in F-35-related contracts so far, said Royal Australian Air Force Air Vice-Marshal Leigh Gordon, head of the joint strike fighter division. “That is a really great example of the strength of Australian industry and its competitiveness in the global sphere,” Gordon said. Going hand in hand with Australia's ambitions in the defense realm is its renewed focus on space. In July 2018, it established the Australian Space Agency, which brought together about 11 different agencies spread out within the government at various ministries, said Kim Gina Ellis, senior lecturer on space industry engagement, governance and law at Swinburne University of Technology in Victoria. The government wants a central point to coordinate and bring all the civilian activities together, she said. Again, the long-term goal is job creation, she told National Defense. The government wants to add about 20,000 to the approximately 10,000 space sector jobs already in Australia, she said. Meanwhile, as is the case in the United States, the nation has a growing private sector launch industry with a handful of companies building small rockets and launch facilities for small satellites, she said. Along with telescopes and communications systems that have been positioned on the continent since the beginning of the space age, Australia features a favorable geographic location for inserting spacecraft into polar orbits, Ellis noted. The new agency will “help build the industry and show the rest of the world that we have these amazing capabilities and that we support most of the major space exploration programs,” Ellis said. Jeff Shockey, vice president of global sales and marketing for Boeing Defense, Space and Security, said in an interview that Australia is growing very close to investing 2 percent of its GDP in defense. “They are doing the right things. There is a lot going on down here in this region and they are at the forefront.” Boeing has ambitions to export the Airpower Teaming System to the other “five-eye” partners: the United States, United Kingdom, Canada and New Zealand. Shockey said Boeing is an international company and Australia is an enduring ally and partner. Building a new jet fighter outside the United States should not be seen as “off-shoring” work, he said. “We're a global company and we're doing work throughout the enterprise on this project and others, both domestically and abroad,” he said. “There is a great high-tech talent base here,” he added. And the wide-open spaces will be a perfect proving ground for unmanned aircraft, Shockey and other company executives said. Willette said: “We're never going to have the assembly lines for an F-18, an F-16 or a JSF, but we do have the componentry, the systems and the systems integration and the skilled engineering. Designing and fabrication and machining — and the professional services that back all that up — those are huge strengths for this country.” The government has several new programs to spark innovation that would be recognizable to the U.S. defense industry. It is setting up grand challenges, cooperative research centers, university research networks and small business research grants. It has what would be called in the U.S. “broad agency announcements” with pots of money dedicated over the next 10 years for organizations with ideas in fields such as intelligence, reconnaissance and surveillance, electronic warfare, cybersecurity, amphibious warfare, maritime and anti-submarine warfare, and air and sealift. The 2018 Defense Industrial Capability Plan was just one building block in a larger plan, said Willette. The Australian government is continuing to produce more policies surrounding manufacturing skills and science, technology engineering and math education. “Having a level of sovereignty, and integrity and resiliency in your supply chain is incredibly important from a national security perspective,” Willette added. The ideas for the new programs are based on long-established U.S. or U.K. acquisition programs, said a government official who was not authorized to speak on the record. The Australian government is keen to partner with U.S. universities and has established the Australia-U.S. Multidisciplinary University Research Initiative Program to help Australian schools establish themselves with the Pentagon's Multidisciplinary University Research Initiative. It will provide Australian colleges with grants of up to 1 million Australian dollars per year if they can team with U.S. counterparts in the MURI program. Willette said: “The message very clearly coming from Australia is: ‘partner with us.'” http://www.nationaldefensemagazine.org/articles/2019/4/29/australia-makes-moves-to-grow-its-defense-industry