BAE buys L-1's Intelligence Services Group for $300 million
L-1 Identity Solutions’ Intelligence Services Group is a highly regarded supplier to the U.S. intelligence and defense communities; the acquisition will complement BAE Systems’ growing Intelligence & Security sector, which focuses on four key customer missions —- intelligence and counterintelligence, homeland security, law enforcement, and support to military operations
In response to growing demand for intelligence and security services, BAE Systems on Monday announced it has entered into a definitive agreement to acquire L-1 Identity Solutions, Inc.’s Intelligence Services Group, which comprises SpecTal, LLC, Advanced Concepts, Inc., and McClendon, LLC, for a total purchase price of $295,833,000.
SpecTal, Advanced Concepts, and McClendon are highly regarded suppliers to the U.S. intelligence and defense communities that will complement BAE Systems’ growing Intelligence & Security sector, which focuses on four key customer missions—- intelligence and counterintelligence, homeland security, law enforcement, and support to military operations.
Linda Hudson, president and CEO of BAE Systems, said that “The acquisition of SpecTal, LLC, Advanced Concepts, Inc., and McClendon, LLC will significantly advance our offerings to the U.S. intelligence community. Their capabilities will enhance BAE Systems’ existing knowledge and expertise and will better position us to offer our government customers the security and intelligence support they need to complete their missions, now and in the future.”
The acquisition of L-1’s Intelligence Services Group reflects BAE Systems’ global strategy to enhance and grow its business in the area of customer support and services, which includes cyber and security as well as readiness and sustainment activities. For the six months to 30 June 2010, this area of the business generated 49 percent of BAE Systems revenues.
“I am extremely proud of L-1’s accomplishments and the role we have played in helping solve the nation’s most challenging national security and intelligence concerns,” said Robert V. LaPenta, chairman, president, and CEO of L-1 Identity Solutions. “Given the strong presence BAE Systems has today in the intelligence, homeland security, and national defense communities, as well as across all levels of U.S. law enforcement, we believe that the L-1 intelligence services businesses will complement and enhance BAE Systems’ business and provide greater opportunities for our employees moving forward.”
Upon successful closing, the more than 1,000 skilled information and security employees of SpecTal, Advanced Concepts, and McClendon, will join the BAE Systems Intelligence & Security sector, which is led by John Gannon and based in Arlington, Virginia. BAE says that the addition of their resources will strengthen BAE Systems’ ability to address the security needs of information-based missions of the U.S. Department of Defense, Department of Homeland Security, and intelligence community customers.
The proposed acquisition is conditional, among other things, upon receiving certain U.S. regulatory approvals and is expected to close in the fourth quarter of 2010.
