L-3 Communications [LLL] on Sept. 7 said it has agreed to acquire 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 is expected to close in September, were not disclosed. Micreo has 72 employees and is expected to have $27 million in sales and be accretive to L-3’s earnings in 2017.
L-3 said the acquisition will strengthen its development of future products in the higher electronic warfare radio frequency bandwidth. Micreo’s products support various air, land and security programs in Australia and it supplies defense companies worldwide with its products.
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.
“As part of L-3, Micreo will enhance our technical expertise and offerings, providing immediate synergies with L-3 products as well as adjacent growth opportunities across our existing business,” Michael Strianese, L-3’s chairman and CEO, said in a statement. “Importantly, this addition will help drive L-3’s international growth, wile providing cross-selling opportunities in key markets.”
Chris Kubasik, L-3’s president and chief operating officer, stated that the deal will grow L-3’s customer base in Australia and in the Asia-Pacific region. Kubasik joined L-3 last October and has been focused on realigning the businesses and growth, to include acquisitions.
L-3 had $321 million in sales from customers in Australia in 2015, up from $254 million in 2014. The company’s last acquisition in Australia was in 2008 and was for HSA Systems Pty Limited, a provider of geospatial, marine and electronic systems for maritime and defense customers. At the time, HSA had $10 million in sales.