Insider News Business& L-1 Enters 2 Acquisition Agreements


L-1 Identity Solutions, Stamford, Conn., announced that it has entered into an agreement to be acquired by Safran, the French aerospace and defense technology group, in a merger transaction providing for stockholders to receive $12 per share in cash, for an aggregate enterprise value of approximately $1.6 billion, inclusive of outstanding debt. Robert V. LaPenta, chairman, president and chief executive officer of L-1 Identity Solutions, said, “I am extremely proud of L-1’s accomplishments in the develop- ment of multi-modal biometric technolo- gies and the role we have played in helping establish the identity management market over the last four years. A lot has changed since we started, and today the industry has grown significantly. It is at an impor- tant inflection point where a strong global infrastructure, greater scale and reach, larger investments in R&D and increased


resources from human capital to cash, are a necessity in order to position optimally for the opportunities of tomorrow.” Under the terms of the agreement, Saf- ran agreed to acquire L-1 Identity Solu- tions Inc. following the sale of L-1’s intelligence services businesses to BAE Systems Inc., the U.K.-based company. After giving effect to the BAE Systems transaction, L-1 will be comprised of Secure Credentialing Solutions, Biomet- ric and Enterprise Access Solutions and Enrollment Services. Upon close of the transaction, Safran plans to integrate L-1’s operations into its subsidiary, Morpho. L-1 believes that the Safran acquisition will bring to the businesses an immedi- ate global infrastructure, greater scale and reach, the capacity for larger invest- ments in research and development and increased resources to accelerate growth and expand into new global markets.


In connection with the Safran transac-


tion, BAE Systems Inc. (the U.S. affiliate of BAE Systems plc) agreed to acquire the stock and membership interests of the entities comprising the L-1 intelli- gence services businesses for a purchase price of approximately $295.8 million in cash and approximately $7.2 million of certain assumed obligations for a total value of $303 million. These businesses include SpecTal LLC, Advanced Con- cepts Inc., and McClendon LLC. Upon the close of the transaction, the employ- ees of the L-1 intelligence services busi- nesses will join the BAE Systems Intel- ligence & Security sector.


Goldman, Sachs & Co. and Stone Key


Partners LLC are financial advisors to L-1 in connection with the transactions. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to L-1 in connection with the transactions. ■


For free information circle 205 or visit www.sdmmag.com/webcard 30 November 2010


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