L-3 to Sell Cyber Unit to CACI

L-3 Communications Holdings Inc. agreed to sell its cybersecurity unit to CACI International Inc. for $550 million, following a review of the segment.

L-3 Chairman and Chief Executive Michael T. Strianese said in prepared remarks Tuesday that the divestiture of its National Security Solutions unit will allow the company to sharpen its focus on its more profitable defense electronics, communications and surveillance and reconnaissance systems businesses.

CACI said the deal, expected to close by the end of March, is expected to add roughly $1 billion in annual revenue and expand the company's presence in enterprise information technology, intelligence services and key market areas. The acquisition is expected to add to CACI's performance in its current fiscal year that ends in March, and to boost per-share earnings by at least 10% the following fiscal year.

L-3 in July said its was evaluating the future of its National Security unit, which provides cyber services for government and commercial customers. At the time L-3 also said its was evaluating a business that converts big commercial jets for VIPs.

L-3 in October said it swung to a loss in its third quarter following a big write-down of the cyber unit. Like its rivals, L-3 has had to grapple with lower government spending.

Mr. Strianese said Tuesday the company would continue to evaluate its portfolio to look for opportunities to improve its sales and margins but didn't provide details.

L-3 said it expects sales of $10.4 billion this year, excluding the National Security segment.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

December 08, 2015 09:25 ET (14:25 GMT)

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