L-1 to buy intel company
- By William Welsh
- Jun 19, 2007
L-1 Identity Solutions Inc. plans to acquire McClendon Corp., a provider of technology and professional services to government intelligence and military customers, for $66 million in a cash and stock deal.
Under the agreement, L-1 of Stamford, Conn., will pay $33 million in cash and $33 million in equity based on the average closing price of L-1 common shares for a total purchase price of $66 million.
The move not only expands L-1's cross-selling opportunities across the intelligence community but also boosts its service offerings to its existing customer base, L-1 officials said.
McClendon brings L-1 capabilities in imagery intelligence, all-source intelligence analysis, systems engineering and acquisition.
The Chantilly, Va., company has more than 200 employees, more than 90 percent of whom hold top secret security clearances. With the addition of McClendon's employees, L-1 expects to have 850 individuals with top security clearances by the end of the year.
McClendon had a total estimated backlog of $98 million as of February 28. L-1 expects to close the acquisition in July.
William Welsh is a freelance writer covering IT and defense technology.