The Wall Street Journal is reporting that L-3 Communications Holdings Inc. is set to acquire The Titan Corporation.
For New York-based L-3, which has a market capitalization of $8.33 billion and 2004 sales of $6.90 billion, the Titan deal would be the biggest of many acquisitions since the company was founded in 1997 by Frank Lanza, L-3's chairman and chief executive.
Titan would bring to L-3 varied defense-electronics portfolio contracts for communications and information-technology services with the Pentagon and intelligence agencies. Titan also provides military linguists in Iraq, a contract which accounted for some 15% of its first-quarter revenue, and the company is expected to win at least a portion of a new linguist contract to be awarded this year. In addition to technical services, Titan also builds military products, including a high-speed catamaran under development for the Navy, and has a foothold in the Homeland Security market, a priority area for Mr. Lanza. (WSJ.com - L-3 Communications To Purchase Titan In $1.97 Billion Deal)
L-3 Commmunications has a sizable facility in Salt Lake City and does some fantastic defense and homeland security work. Mergers of this size are tricky business. Here's to L-3's continued success, particularly here in Utah.
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