L-3 Communications Holdings Inc. LLL has acquired a Nashville-based company − ForceX, Inc. − that specializes in intelligence, surveillance and reconnaissance (“ISR”) mission-management software and geospatial application technology.
The acquired entity has been renamed L-3 ForceX and will be included into L-3’s Integrated Sensor Systems (ISS) within the Electronic Systems business segment.
L-3 Communications did not disclose the financial terms of the transaction, but expects the newly acquired property to add $30 million in sales in 2016.
L-3 ForceX is mainly focused on ISR mission management software and geospatial application technology programs. It offers a wide variety of sophisticated products that comprise cueing system software, hardware and video algorithms, and wide-area sensor integration solutions and software.
It currently supports a number of significant Department of Defense (DoD) ISR initiatives and classified programs. L-3 ForceX’s customer base includes the U.S. Air Force, U.S. Special Operations Command, the Naval Surface Warfare Center and a variety of DoD agencies. L-3 Communications expects the company to boost the growth potential of its ISS business.
L-3 Communications is transforming its business portfolio to bring more focus to defense electronics, communications and ISR markets where it has leading positions.
With rising security threats, the U.S. government has realized the need for ISR technologies and has shifted its emphasis toward high-tech intelligence equipment. On a global scale, the demand for weapons has also witnessed a gradual turn.
Growing demand for sensors, missiles and next-generation ISR technologies should definitely help defense players like L-3 Communications, agile enough to cater to changing demand, to witness huge gains ahead.
Zacks Rank
L3 Communications currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader aerospace and defense sector are The Boeing Company BA, General Dynamics Corp. GD and Lockheed Martin Corp. LMT, all three carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment