L-3 Communications acquires defense contractor TMA

L-3 Communications Holdings Inc. acquired Technology, Management and Analysis Corp. of McLean, Va., for approximately $50 million in cash, plus consideration of up to $7 million, contingent on TMA's financial performance in 2002 and 2003.

L-3 of New York announced the deal Sept. 24.

TMA provides professional services to the Department of Defense in project engineering and logistics, information technology and technical services. TMA employs 500 people and expects $55 million in sales in 2003, according to a statement from investment bank Houlihan Lokey Howard & Zukin, which advised TMA and negotiated the transaction on behalf of the company.

The acquisition follows on the heels of a Sept. 18 announcement by L-3 of its intention to acquire Wescam Inc., a Canadian provider of wireless visual information systems for the military, for about $118 million.

L-3 Communications provides intelligence, surveillance and reconnaissance products, secure communications systems and products, avionics and ocean products, training products, microwave components and telemetry, instrumentation, space and wireless products. Its customers include the Department of Defense, U.S. government intelligence agencies, aerospace prime contractors and commercial telecommunications and wireless customers.

The acquisition of TMA broadens L-3's capabilities and expands its work with the Navy, said Frank Lanza, chairman and chief executive officer of L-3 Communications.

TMA is a major contractor for the Naval Sea Systems Command, and participates in Navy programs such as AEGIS, Standard Missile, Strategic Sealift, Vertical Launch Systems and Amphibious Warfare. The company's expertise includes acquisition and systems engineering, logistics and life cycle management, production monitoring and analysis, ship test and trials planning and conduct, network engineering and maintenance, and hardware and software implementations, according to Houlihan Lokey.

Jerry Grossman, managing director at Houlihan Lokey and head of the firm's Government Services & Aerospace/Defense Group, said the two companies make a logical combination.

"TMA's blend of distinguished performance at NAVSEA headquarters with significant field services capabilities is a powerful combination in step with customer priorities," Grossman said. "L-3 provides the basis for continuing growth and cultural continuity. It's a critical strategic fit."