L-3 Communications [LLL] on Tuesday said it has acquired ForceX, Inc., to enhance its work in the intelligence, surveillance and reconnaissance (ISR) and add new capabilities.
Terms of the deal were not disclosed. The business is expected to generate about $30 million in sales in 2016 and L-3 said it is expected to be immediately accretive. The company said goodwill and other intangible assets from the acquisition are expected to be deductible for income tax purposes.
Based in Tennessee, ForceX has been renamed L-3 ForceX and gives L-3 an entrée into tactical processing, exploitation and dissemination (PED) capabilities that provide an integrated tactical operational picture.
The tactical PED capabilities that ForceX has turn sensor information into actionable information for operators, Jeff Miller, president of L-3’s Integrated Sensor Systems (ISS) sector within its Electronic Systems segment, told Defense Daily on Wednesday. These capabilities help shift L-3 from being a “sensor supplier to an information supplier,” he said. This gives an operator “confidence in making a good decision,” Miller said.
L-3 ForceX specializes in ISR mission management software and geospatial application technology programs in various products such as cueing software, hardware and video algorithms, and wide area sensor integration solutions and software. It also provides training courseware, materials and turnkey classroom training solutions for its customers.
L-3 ForceX has about 110 employees and its customers include the Air Force, Special Operations Command, Naval Surface Warfare Center, and various Defense Department agencies. ForceX has also worked with L-3 for the past seven years and has relationships with several defense prime contractors. Miller said as the two companies became closer it became clear over the years that L-3 increasingly could user their capabilities.
L-3 ForceX is part of L-3’s ISS segment. The business unit will be led by Luke Savoie, a former ForceX employee who is rejoining the company later this month, Miller said.
“We have been strategically repositioning our portfolio by adding new capabilities that are aligned with our customers’ priorities, and we are pleased to announce this acquisition, which furthers this objective,” Michael Strianese, chairman, president and CEO of L-3, said in a statement. “ForceX complements L-3’s core business, enhancing our product and system capabilities to compete in new markets, and expands our customer base.”
Miller said the acquisition is a “clear sign” of L-3’s “continuing focus and positioning” in the ISR arena. He added that L-3 and ForceX share a common culture and focus on the customer. He also said L-3 will help ForceX invest in key areas and open additional market channels, including international markets.
KippsDesanto served as ForceX’s financial adviser on the deal.