L-3 Communications (NYSE:LLL) announced on Monday that it has entered into an asset purchase agreement to acquire certain assets of Implant Sciences Corporation for $117.5mln in cash, plus the assumption of specified liabilities.
L-3 intends to finance the asset purchase using its existing cash on hand.
Implant has recently entered into Chapter 11 Bankruptcy protection, and the consummation of the APA will be subject to the approval of the US Bankruptcy Court. Following a successful acquisition, the assets will be integrated into L-3’s Security & Detection Systems division within its Electronic Systems business segment.
L-3 will acquire the explosives trace detection (ETD) business of Implant. The company’s ETD products have received approvals and certifications from several international regulatory agencies, including the TSA in the US, ECAC in Europe and the Ministry of Public Safety in China.
In September, the TSA placed a delivery order for 1,353 of the QS-B220 systems and related supplies.
L-3 shares were up 0.2% at $151.94 but underperforming gain by the wider market on Monday.
Story by ProactiveInvestors