L-3 gets net-centric with Nova Engineering buy
- By Ethan Butterfield
- Aug 14, 2006
Looking to strengthen its network-centric offerings, L-3 Communications Holdings Inc. has acquired Nova Engineering Inc. for $45 million in an all-cash transaction.
L-3 expects the deal to close in the third quarter and to add slightly to the company's fiscal 2006 earnings. An additional $10 million could be tacked on to the final price, depending on Cincinnati-based Nova's future financial performance. Nova Engineering is expected to have annual revenue of $40 million by 2008, L-3 said.
Following the acquisition, Nova Engineering will be integrated into L-3's command, control, communications, intelligence, surveillance and reconnaissance business segment.
Nova Engineering designs and builds communications systems for network-centric warfare and technology-driven applications. Among its products are unattended sensor communications systems, military test and training range instrumentations and wireless modems.
The company also offers software-defined radios and technology for the Defense Department, as well as aerospace prime systems integrators. Nova Engineering also develops digital and radio frequency chip technologies. Its products are used in unmanned aerial vehicles, air vehicles and weapons.
Nova Engineering is on several key Defense Department contracting vehicles, including the Joint Tactical Radio System and Tactical Remote Sensor Systems. The company also is on the Operational Test ? Tactical Engagement System contract and the Army's Spider Program, L-3 said.
The investment bank Jefferies Quarterdeck of Washington advised Nova Engineering on the deal.
L-3 Communications of New York has about 59,500 employees and had $9.4 billion in fiscal 2005 revenue. The company ranks No. 7
on Washington Technology's 2006 Top 100
list of the largest federal IT contractors.