L-3 Communications Agrees to Acquire EOTech, Inc.; A Leading Developer of Advanced Holographic Weapons Sights

NEW YORK--(BUSINESS WIRE)--Sept. 22, 2005--L-3 Communications (NYSE:LLL) 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. The company is a leading merchant supplier of a broad array of high technology products, including guidance and navigation, sensors, scanners, fuzes, data links, propulsion systems, simulators, avionics, electro optics, satellite communications, electrical power equipment, encryption, signal intelligence, antennas and microwave components. L-3 also supports a variety of Homeland Security initiatives with products and services. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies and aerospace prime contractors.


Since I work for L-3 now, I wonder if I can get a job with EOTech!


C4

Quoted: That's just weird. I hope this doesn't have a negative effect on EOTech's customer service or civilian-friendliness.

Hard to say for certain, but I imagine the same folks within EOTech will remain and do their job as normal.


C4

Quoted: I wonder how this will effect their Dealers/Distributors?  They say business as usual, but thats what they all say at the onset of a purchase agreement.  Maybe this will lower the pricing of the optics or maybe it'll raise it!   Well time will tell Ant

Good question. I would expect them to keep things as they are for awhile or until they get a better understanding of the optics market (both on the Civy and DOD side).


C4

Quoted: Quoted: Maybe this will lower the pricing of the optics or maybe it'll raise it!   Ant I'm betting on the latter.  Products rarely ever get cheaper after mergers/takeovers/buyouts.

L-3 is a high tech company and will bring to the table a lot of smart folks. They also have a lot more resources (money) than what EOTech had to work with before.


C4

Quoted: $49million.....seem pretty cheap.  Shit, I think I have a million dollars worth of Eotech optics myself

That seems like a heck of a deal.  $49M and the company sells $25M/yr.  Plus future .mil contracts already signed, plus new products on the horizon.  Nice buy !

and here I am trying to land a job at L-3.........

Here is to fingers crossed that they will call.

Very interesting......

Between this and the shake-up at Aimpoint....things are a changin'.