L-3 agrees to acquire assets of implant sciences
L-3 Communications of New York, NY announced on October 10 that it has entered into an asset purchase agreement (APA) to acquire certain assets of Implant Sciences Corporation (Implant) for $117.5 million 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 approval of the U.S. 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.
Pursuant to the terms of the APA, 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 U.S., ECAC in Europe and the Ministry of Public Safety inChina. In September 2016, the TSA placed a delivery order for 1,353 of the QS-B220 systems and related supplies.
“L-3’s leadership across a broad scope of security and detection technologies will be enhanced by these assets, supporting our strategy to provide our customers with scalable, integrated solutions that meet the evolving global demand,” said Michael Strianese, L-3’s chairman and chief executive officer.
Based in Wilmington, MA, Implant filed for bankruptcy protection pursuant to Chapter 11 of the U.S. Bankruptcy Code on October 10, 2016. L-3 will be, subject to U.S. Bankruptcy Court approval, entitled to a breakup fee and expense reimbursement if it does not prevail as the successful bidder at any subsequent auction in accordance with the terms of the APA. L-3’s role as purchaser and the sale itself are subject to approval by the U.S. Bankruptcy Court.
Source: L-3 Communications