financial - Defense-Update Newscast

cgparis2010

BAE Systems announced today the planned acquisition of three intelligence services companies, for a total investment of almost US$300 million. The companies to be acquired are SpecTal LLC, Advanced Concepts Inc., and McClendon LLC – all part of the L-1 Identity Solutions Inc.’s (L1ID) Intelligence Services Group. Following the completion of the acquisition expected by the fourth quarter of 2010, BAE will add more than 1,000 skilled information and security employees to its workforce. This acquisition reflects its global strategy to enhance and grow its business in the area of customer support and services,[link widoczny dla zalogowanych], which includes cyber and security as well as readiness and sustainment activities focusing on four key customer missions – intelligence and counterintelligence, homeland security,[link widoczny dla zalogowanych], law enforcement and support to military operations. For the six months to 30 June 2010, this area of the business generated 49% of BAE Systems revenues.
Focusing on its core security activities,[link widoczny dla zalogowanych], L1ID itself is being acquired by the French Safran group. This move is expected to be completed by the first quarter of 2011. L1ID provides Secure Credentialing Solutions, Biometric and Enterprise Access Solutions and Enrollment Services. These businesses are expected to have combined estimated Fiscal Year 2010 revenues of $486.0 million. The acquisition by Safran is expected to open international growth opportunities for L-1. According to Jean-Paul Herteman,[link widoczny dla zalogowanych], Chief Executive Officer of Safran,[link widoczny dla zalogowanych], the company plans to integrate L-1′s operations into its subsidiary, Morpho.