Leidos buys L3 Harris Technologies’ security detection, biometrics and automation businesses
Leidos has finalized the purchase of L3Harris Technologies’ biometric security detection and automation portfolio in exchange for roughly $1 billion cash, the company announced. The deal was announced on Feb. 4, 2020.
L3Harris Technologies develops biometric screening technology for airports and critical infrastructures and automated industrial products such as automated tray return systems. Six years ago, the company’s sensors were tested and evaluated by the U.S. Department of Justice. At the time, L3Harris demonstrated its Range-R device.
Business will from now on be conducted under the Leidos Civil Group, led by Jim Moos, Civil Group president. The acquisition boosts Leidos’ portfolio with a global security detection and automation footprint of over 24,000 systems implemented in over 120 countries. Leidos will continue providing its business to aviation, transportation, government and critical infrastructure markets.
“In line with our mission of making the world safer, healthier and more efficient, this security detection and automation acquisition furthers our important work in the secure movement of people and commerce globally,” said Leidos Chairman and CEO Roger Krone, in a prepared statement. “We are excited to support critical infrastructure wherever it is needed, and to help transform the global security marketplace.”
“This deal expands our scope and scale in securing ports and borders, enhancing passenger movement in airports of the future, and fortifying infrastructure for national security and public venues,” said Moos, in a statement. “We are pleased to welcome more than 1,200 L3Harris employees around the world to the Leidos team, who share our deep commitment of providing our customers with a fully-integrated security technology ecosystem.”
By purchasing L3Harris Technologies’ security detection and automation businesses, Leidos has expanded its product portfolio with checkpoint CT scanners, people scanners, explosives trace detectors, checked baggage screeners, and automated tray return systems (ATRS). The company now has gained more exposure in aviation, ports, borders, and critical infrastructure internationally in more than 75 countries.
Leidos retained Credit Suisse Securities (USA) LLC as financial advisor, and Fried, Frank, Harris, Shriver, & Jacobson LLP and DLA Piper as legal advisors in connection with the transaction.
Leidos was selected to upgrade the UK Home Office’s cybersecurity capabilities with biometrics last year.