L-1 Identity Solutions has announced the completion of its sale of its L-1 intelligence services businesses to BAE Systems.
The purchase price of US$303 million comprises US$295.8 million in cash and approximately US7.2 million of certain assumed obligations.
L-1 now comprises Secure Credentialing Solutions, Biometric and Enterprise Access Solutions and Enrolment Services. The net cash proceeds from the sale of the L-1 intelligence services businesses is being used to repay outstanding debts under L-1’s secured credit facility, including the full amount of the term loans and a portion of the outstanding borrowings under the revolving credit facility, leaving a remaining balance of less than US$50 million.
“We have assembled a group of highly respected and specialised intelligence businesses that have earned the respect and trust of customers, working alongside them in partnership to help protect national security interests and fight global terrorism across multiple fronts,” says Robert V LaPenta, chairman, president and CEO of L-1 Identity Solutions. “Joining forces with BAE gives this team of L-1 professionals the depth of resources and breadth of customer access they will need to bring their critical skillsets to a wider audience and better serve the intelligence community mission, today and in the future. The transaction we’ve completed with BAE is beneficial to the company and our shareholders in capitalising on the value we have built in the intelligence services business and represents the completion of an important step toward the consummation of the previously announced sale of L-1.”
BAE Systems is a global defence and security company with approximately 100,000 employees worldwide. The former L-1 intelligence services employees are joining the BAE Systems, Inc. Intelligence & Security sector.
Under the terms of a merger agreement entered into in September 2010, Safran has agreed to acquire L-1 Identity Solutions following the completion of the BAE Systems transaction. L-1 expects the Safran merger to close during the first quarter of 2011.