L-3 Communications [LLL] on Oct. 3 said it has complete its acquisition of Australian defense company Micreo Limited in a deal that expands its business in Australia and complements its capabilities in sensors.
Terms of the deal, which closed on Sept. 30, were not disclosed. Micreo has about 70 employees and is expected to have $27 million in sales and be accretive to L-3’s earnings in 2017.
L-3 Micreo designs and produces RF and photonic products for radar and electronic warfare. The business’s products support various air, land and security programs in Australia and it supplies defense companies worldwide with its products.
L-3 said the acquisition will strengthen its development of future products in the higher electronic warfare radio frequency bandwidth.
Micreo’s products are also used in counter improvised explosive device equipment that L-3 said will enhance its existing range of man-portable and vehicle electronic counter measures equipment.
L-3’s current work in Australia includes satellite communications, maritime, warrior systems, aviation and aircraft modernization work.
L-3 Micreo will report to United Kingdom-based L-3 TRL Technology, part of the Integrated Sensor Systems sector within L-3’s Electronic Systems segment.
“We continue to evaluate potential acquisitions that both strengthen our core businesses and increase our international presence,” Michael Strianese, L-3’s chairman and CEO, said in a statement. “L-3 Micreo supports these objectives by complementing our electronic warfare capabilities and expanding our Australian footprint, while enhancing the opportunities we are currently pursuing.”
Micreo’s senior management will remain with the company.
L-3 had $321 million in sales from customers in Australia in 2015, up from $254 million in 2014. The company has about 200 employees in Australia following the Micreo deal.