Leidos [LDOS] on Monday completed its $1 billion acquisition of the security and detection, and automation businesses of L3Harris Technologies [LHX], adding a strong and varied product portfolio used to help secure the global air transportation system and critical infrastructures.
The deal complements Leidos’ existing aviation security and port and border security solutions and adds about $500 million in annual sales.
Leidos said its portfolio of security detection and automation products now includes more than 24,000 systems deployed in more than 120 countries. The company’s primary competitors in this space include Smiths Detection, which is part of Britain’s
Smiths Group, OSI Systems’ [OSIS] Rapiscan Systems division, China’s NucTech, and a number of smaller companies that compete in various niches of the detection and automation spaces.
The security detection and automation businesses are part of Leidos’ Civil Group.
“This deal expands our scope and scale in securing ports and borders, enhancing passenger movement in airports of the future, and fortifying infrastructure for national security and public venues,” Jim Moos, president of the Civil Group, said in a statement. “We are pleased to welcome more than 1,200 L3Harris employees around the world to the Leidos team, who share our deep commitment of providing our customers with a fully-integrated security technology ecosystem.”
The automation business of L3Harris includes Automated Screening Lanes, which are used in some airports worldwide and are being evaluated in a number of U.S. airports by the Transportation Security Administration to speed throughput through aviation security checkpoints and potentially provide more data to enhance security.
Leidos said the deal will be immediately accretive to its adjusted earnings.