March 14, 2008, Los Angeles, CA and New York, NY--Northrop Grumman Corporation signed a definitive agreement to sell its Electro-Optical Systems business for $175 million in cash to L-3 Communications. Completion of the transaction is expected in the second quarter of 2008.
Northrop Grumman's Electro-Optical Systems (EOS), a part of its Electronic Systems sector, produces night vision and applied optics products and had sales of approximately $190 million in 2007. EOS' will be integrated into L-3's Specialized Products segment within the Sensors and Simulation Group.
L-3 currently offers fully integrated imaging solutions, including electro-optical/infrared sensors, high-definition turrets, tactical sights and laser designators for air, land, and sea applications. Headquartered in New York City, L-3 Communications employs over 64,000 people worldwide and is a prime contractor in aircraft modernization and maintenance, C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2007 sales of $14 billion.
"Our strategy is to acquire businesses that expand our core offerings," said James W. Dunn, president of L-3's Sensors and Simulation Group. "There is strong demand worldwide for image-enhancing products, and the addition of EOS' products and technologies enhances our ability to meet that need. Including EOS, L-3's businesses will generate approximately $800 million in annual sales, with growth exceeding 10%."
For more information, visit www.northropgrumman.com.