L-3 Buys Government Engineering Services Business

L-3 Communications Holdings Inc. has agreed to acquire Emergent Government Services Group, a wholly owned subsidiary of Emergent Information Technologies Inc. (GSG), for approximately $38 million in cash, the company announced Nov. 19.

The acquisition is expected to close by the end of 2001.

The acquisition is expected to add approximately $50 million of sales to L-3's base of more than $1.9 billion in annual revenue. L-3 said the new business also has good growth prospects for 2003 and beyond.

GSG, an engineering and information services company headquartered in Vienna, Va., has expertise in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR), modeling and simulation, space science data systems development, and high-end systems engineering and technical assistance support.

The group is a contractor for the U.S. Air Force Studies and Analysis Agency, developing and operating numerous air campaign modeling and simulation tools. It has been partnering with the Air Force, Army, Navy and intelligence agencies for 30 years, L-3 said, and it provides space science research for NASA.

"GSG is well respected for its solid programs, excellent customer relationships and its scientists, engineers and technicians, [who] are experts in air power doctrine, military operations analysis, remote sensing and solar physics," said Frank Lanza, chairman and chief executive officer of L-3.

L-3, based in New York City, provides secure communications systems and products, avionics and ocean products, training products, microwave components and telemetry, instrumentation, space and wireless products. Customers include the Defense Department, members of the federal government intelligence community, aerospace prime contractors and commercial telecommunications and wireless customers.

L-3 was formed in 1997 when Lockheed Martin Corp. of Bethesda, Md., purchased Loral Corp. and elements of the two companies were spun off and sold to form L-3.