Safran in Talks to acquire most of L-1 Identity Solutions Inc.
Paris-based Safran SA is exploring the acquisition of Connecticut-based L-1 Identity Solution; L-1 is likely to be split up, with another buyer acquiring a separate unit that sells consulting services to U.S. intelligence agencies; L-1 had a stock market value of about $670 million as of last Thursday; L-1’s CEO, Robert LaPenta, formed the company after serving as president and chief financial officer of L-3 Communications Holdings Inc. from 1997 to 2005; LaPenta helped start L-3 with co-founder Frank Lanza after both men left Lockheed Martin Corp
Safran SA, the defense-electronics maker, is in talks to purchase most of L-1 Identity Solutions Inc., according to two people with knowledge of the matter, it was reported five days ago. L-1 shares surged the most in more than four years.
Bloomberg’s Zachary R. Mider, Andrea Rothman, and Jacqueline Simmons report that Safran is among the bidders pursuing a deal to buy L-1’s businesses that help customers track biometric data. U.S.-based L-1 is likely to be split up, with another buyer acquiring a separate unit that sells consulting services to U.S. intelligence agencies, said one of the writers’ sources. No deal is likely to be reached for several weeks, the person said.
A deal would be Safran CEOr Jean-Paul Herteman’s latest effort to boost revenue from biometric technology. Paris-based Safran has said it expects the biometrics market to grow 15 percent a year over the next five years.
L-1 had a stock market value of about $670 million as of last Thursday. The company, based in Stamford, Connecticut, said in March it would explore “strategic alternatives” including a sale.
“There are multiple companies interested, in the whole or in parts,” said Doni Fordyce, an L-1 spokeswoman. Potential buyers are currently looking at L-1’s books, she said. Fordyce declined to identify the interested companies. Catherine Malek, a Safran spokeswoman, declined to comment.
Bloomberg reports that Safran’s talks with L-1 have recently slowed, said one of the people with knowledge of the matter, as the French company focuses on Zodiac Aerospace. Safran on July 11 confirmed it offered to buy the French aviation-equipment maker.
Zodiac, which had a stock market value of $3.2 billion as of last Thursday, has rejected the approach.
Safran lost a bidding contest in 2008 to buy an identification unit of Beaverton, Oregon-based Digimarc Corp. when the business was sold to L-1 for $310 million.
L-1’s CEO, Robert LaPenta, formed the company after serving as president and chief financial officer of L-3 Communications Holdings Inc. from 1997 to 2005. LaPenta helped start L-3 with co-founder Frank Lanza after both men left Lockheed Martin Corp.
