L-1 Identity Solutions of Connecticut has completed the sale of its intelligence services businesses to BAE Systems Inc.
The purchase price for SpecTal LLC, Advanced Concepts Inc. and McClendon to BAE was $295.8 million in cash and $7.2 million of certain assumed obligations for a total value of $303 million.
With the transaction completed, L-1 is comprised of Secure Credentialing Solutions, Biometric and Enterprise Access Solutions and Enrollment Services.
L-1 said the net cash proceeds from the sale of the businesses is being used to repay outstanding debt under L-1's secured credit facility, including the full amount of term loans and a portion of the outstanding borrowings under a revolving credit facility, leaving a remaining balance of less than $50 million.
"We have assembled a group of highly respected and specialized 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," said Robert V. LaPenta, chairman, president and chief executive officer 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 skill sets 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 capitalizing 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."
It was previously announced that Safran SA of France agreed to acquire L-1 Identity Solutions Inc. following the completion of the BAE Systems Inc. transaction.
L-1 said it expects the Safran deal to close during the first quarter of 2011.
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