L-3 Communications to Acquire EER Systems
- By Gail Repsher Emery
- May 16, 2001
L-3 Communications Corp. of New York announced May 16 that it will acquire EER Systems Inc. of Chantilly, Va., for about $105 million, plus up to an additional $10 million, based on EER's financial performance for 2001 and 2002. The acquisition is expected to close within 30 days, L-3 reported.
EER's annual sales for 2001 are expected to be approximately $130 million. The acquisition is expected to be accretive to L-3's earnings in 2001.
L-3 Communications, a spin-off of Bethesda, Md., Lockheed Martin Corp., makes secure systems and products for satellite, avionics and marine communications. It also makes training products, microwave components and telemetry, instrumentation, space and wireless products. Its clients including the Department of Defense, U.S. intelligence agencies, aerospace prime contractors and commercial telecommunications and wireless customers.
EER specializes in communication systems, training and simulation equipment and hardware and software for the U.S. Army, Air Force and Navy, the Federal Aviation Administration and the Ballistic Missile Defense Organization.
The company provides systems support for the Hawk and Patriot missile systems, unmanned aerial vehicles, the cooperative engagement capability program and the F/A-18 aircraft. The company also offers training systems, such as U.S. Navy training devices and OH-58D Kiowa Warrior crew station mission equipment trainers, as well as wide-area security systems.
The acquisition extends the capabilities of L-3 Communications into several key markets, including Ballistic Missile Defense Organization and the Naval Coastal Systems Center, and will allow L-3 to broaden its product offerings, said Frank Lanza, L-3 chairman and chief executive officer.