L-3 Communications Agrees to Acquire EOTech, Inc.
(Source: Source: L-3 Communications US Department of Defense; issued Sept. 22, 2005)
NEW YORK --- L-3 Communications announced today that it has signed an agreement to acquire EOTech, Inc. (EOTech) for approximately $49 million in cash, subject to customary closing conditions. The acquisition is expected to add approximately $25 million to L-3's sales for 2006 and be slightly accretive to L-3's earnings. The acquisition is expected to be completed in the fourth quarter of 2005.
Headquartered in Ann Arbor, Michigan, EOTech designs, manufactures and markets electro-optical products and systems. Using advanced laser and holographic technology to enhance optical systems in target acquisition systems, the company produces holographic weapon sights for sale to both domestic and international military customers, as well as the homeland security and law enforcement markets. EOTech invented and manufactures the world's first holographic sighting system to interface with tactical small and medium caliber weapon platforms.
Elite units in the military and law enforcement agencies around the world are rapidly adopting EOTech's advanced holographic weapons as their preferred and standard close quarter battle (CQB) optics for small arms. U.S. customers include the U.S. Army's Special Operations Command, the U.S. Navy, the U.S. Marine Corps, the U.S. Drug Enforcement Administration, as well as classified customers. The company's products are currently in use in Iraq and Afghanistan, as well as for homeland security applications.
"EOTech provides L-3 with a technologically advanced product line of weapons sights and production capability that enhances our EO/IR business, and moves us forward in our strategy to expand our product base in this growing segment," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "EOTech's operations are very complementary with our Brashear business and will create increased opportunities for L-3 in the special operations, special mission and law enforcement marketplaces."
Headquartered in New York City, L-3 Communications is a leading provider of Intelligence, Surveillance and Reconnaissance (ISR) systems, secure communications systems, aircraft modernization, training, and government services. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies and aerospace prime contractors.