RESTON, Va., Could 4, 2020 /PRNewswire/ — Leidos (NYSE: LDOS), a FORTUNE® 500 science and know-how chief, at this time introduced that it has accomplished the acquisition of L3Harris Applied sciences’ (“L3Harris”) Safety Detection and Automation companies, for roughly $1 billion in money. The transaction was previously announced on Feb. 4, 2020.
The acquired companies present airport and demanding infrastructure screening merchandise, automated tray return programs and different industrial automation merchandise. They are going to function throughout the Leidos Civil Group, led by Jim Moos, Civil Group president. Mixed with Leidos’ current cargo and baggage screening product traces, Leidos now goes to market with a worldwide safety detection and automation footprint of greater than 24,000 programs deployed in additional than 120 nations. Leidos will proceed to serve world prospects within the aviation, transportation, authorities and demanding infrastructure markets.
“Consistent with our mission of creating the world safer, more healthy and extra environment friendly, this safety detection and automation acquisition furthers our vital work within the safe motion of individuals and commerce globally,” mentioned Leidos Chairman and CEO Roger Krone. “We’re excited to assist vital infrastructure wherever it’s wanted, and to assist remodel the worldwide safety market.”
“This deal expands our scope and scale in securing ports and borders, enhancing passenger motion in airports of the longer term, and fortifying infrastructure for nationwide safety and public venues,” mentioned Moos. “We’re happy to welcome greater than 1,200 L3Harris workers around the globe to the Leidos staff, who share our deep dedication of offering our prospects with a fully-integrated safety know-how ecosystem.”
Compelling Strategic and Operational Advantages
- Expands Product Portfolio in Excessive-Development, World Safety Market: The closing of this acquisition creates a complete and cohesive safety detection platform by including applied sciences together with checkpoint CT scanners, individuals scanners, explosives hint detectors, checked baggage screeners, and automatic tray return programs (ATRS) to Leidos’ safety detection portfolio. The mixed options improve the corporate’s choices in an evolving world safety product market, which permits diversification past the federal price range and positions the corporate for long-term progress.
- Elevated Worldwide Presence Diversifies Income: This enterprise expands buyer penetration throughout aviation, ports, borders, and demanding infrastructure internationally and will increase Leidos’ worldwide safety merchandise income greater than six-fold. The deal brings Leidos merchandise into 75 further nations.
- Development and Innovation Accelerated by Scale: The combination of those new companies right into a complete portfolio permits Leidos to leverage its core technical strengths, in-depth biometrics capabilities, and world gross sales channels to quickly develop and ship new options. Expertise investments throughout the mixed portfolio will assist speed up innovation to handle rising and evolving threats and enhance service effectivity for patrons.
The transaction is predicted to be instantly accretive to Leidos’ income progress, EBITDA margins, and non-GAAP diluted earnings per share upon closing.
Money consideration of roughly $1.zero billion plus associated transaction prices was funded by means of a mix of extra money readily available and a two-year time period mortgage.
Leidos retained Credit score Suisse Securities (USA) LLC as monetary advisor, and Fried, Frank, Harris, Shriver, & Jacobson LLP and DLA Piper as authorized advisors in reference to the transaction.
Leidos is a Fortune 500® data know-how, engineering, and science options and providers chief working to resolve the world’s hardest challenges within the protection, intelligence, homeland safety, civil, and well being markets. The corporate’s 37,000 workers assist very important missions for presidency and business prospects. Headquartered in Reston, Va., Leidos reported annual revenues of roughly $11.09 billion for the fiscal yr ended January 3, 2020. For extra data, go to www.Leidos.com.
Cautionary Assertion Concerning Ahead-Trying Statements
The forward-looking statements contained on this launch contain dangers and uncertainties which will have an effect on Leidos’ operations, markets, merchandise, providers, costs and different elements as mentioned in filings with the Securities and Trade Fee (the “SEC”). With out limiting the foregoing, forward-looking statements typically use phrases akin to “consider,” “anticipate,” “plan,” “anticipate,” “estimate,” “intend,” “search,” “challenge,” “goal,” “purpose,” “might,” “will,” “would,” “might,” “ought to,” “can,” “proceed” and different phrases of comparable that means in reference to a dialogue of the transaction or future working or monetary efficiency or occasions. These dangers and uncertainties embrace, however are usually not restricted to, financial, aggressive, authorized, governmental and technological elements. Accordingly, there isn’t a assurance that the expectations of Leidos can be realized. This launch additionally accommodates statements in regards to the acquisition of the safety detection and automation companies of L3Harris which are primarily based on assumptions at present believed to be legitimate however contain important dangers and uncertainties, a lot of that are past Leidos’ management, which might trigger Leidos’ precise outcomes to vary materially from these forward-looking statements with respect to the transaction, together with, anticipated tax therapy, potential to retain key personnel, the dependency of the transaction on market situations and the affect of a change in market situations on the worth to be acquired within the transaction, unexpected liabilities, future capital expenditures, uncertainty as to the anticipated monetary situation and financial efficiency of the corporate following the closing, together with future revenues, bills, earnings, indebtedness, losses, prospects, enterprise methods for the administration, enlargement and progress of the corporate following the closing, Leidos’ potential to combine the companies efficiently and to attain anticipated synergies, the danger that disruptions from the transaction will hurt Leidos’ enterprise and the affect of the COVID-19 outbreak. Whereas the listing of things offered right here is taken into account consultant, no such listing must be thought of to be a whole assertion of all potential dangers and uncertainties. Unlisted elements might current important further obstacles to the conclusion of forward-looking statements. Penalties of fabric variations in outcomes as in contrast with these anticipated within the forward-looking statements might embrace, amongst different issues, enterprise disruption, operational issues, monetary loss, authorized legal responsibility to 3rd events and related dangers, any of which might have a fabric opposed impact on Leidos’ consolidated monetary situation, outcomes of operations or liquidity. For a dialogue figuring out further vital elements that might trigger precise outcomes to differ materially from these anticipated within the forward-looking statements, see Leidos’ filings with the SEC, together with “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” and “Threat Elements” in Leidos’ annual report on Type 10-Okay for the yr ended January 3, 2020, and in its quarterly experiences on Type 10-Q which can be found at http://www.Leidos.com and on the SEC’s website online at http://www.sec.gov. The forward-looking statements contained on this launch are made solely as of the date of this launch and are primarily based on the knowledge obtainable to Leidos as of the date of this launch. Readers are cautioned to not put undue reliance on forward-looking statements. Leidos assumes no obligation to offer revisions or updates to any forward-looking statements ought to circumstances change, besides as in any other case required by securities and different relevant legal guidelines.
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