Safran/L-1 US$1.09bn deal finalised
Safran has confirmed it has finalised the acquisition of L-1 Identity Solutions for a total cash sum of US$1.09 billion (US$12 per share).
Following the transaction, which was initially announced in September 2010, Safran has become the world leader in biometric identity solutions.
L-1’s businesses (biometric and identity management solutions, access control, secure credentialing and enrolment services) generated sales exceeding US$450 million in 2010.
The firm will join Safran’s existing security business, operating as Morpho, and will be renamed MorphoTrust. According to Safran, the new company will be partly managed as a proxy structure, thus providing appropriate protection for US national security. Run-rate operating cost synergies are expected to represent approximately US$30 million per year, and are expected to be fully realised within 18 to 24 months after closing.
Assuming this acquisition had been completed in 2010, Safran says its security business sales would have totalled 1.4 billion euros last year, with a total workforce of more than 7,200, of whom 2,200 are employed in the US.
Jean-Paul Herteman, chairman and CEO of Safran, said: “We are delighted to have finalised this transaction, which is perfectly aligned with the group’s development strategy in the security business. L-1 is a very impressive company, which has become a major player in the identification market in just a few years, especially in the US. L-1 offers an excellent fit with our own security business, in terms both of technologies and geographic footprint, clearly enhancing our product offering and customer service in this dynamic sector, and consolidating our global leadership in the market for high-tech security solutions.”