L3 Technologies to acquire two information security businesses

By Marjorie Censer / July 11, 2018 at 11:23 AM

L3 Technologies said today it has entered into an agreement to buy Azimuth Security and Linchpin Labs to bolster its cyber and intelligence capabilities.

L3 said it has agreed to pay a combined price of about $200 million, subject to an upward adjustment of up to about $32 million, payable in L3 stock based on the combined companies' post-acquisition sales.

Ottawa, Canada-based Linchpin Labs is a software development company specializing in computer network operations, cross-platform and low-level systems development and IT security services. Sydney, Australia-based Azimuth Security is an information security consultancy focused on analyzing software systems, including threat modeling and design, configuration and source code review, L3 said.

The acquired companies will be known as L3 Trenchant once acquired "and will help deliver advanced capabilities integral to a variety of complex [intelligence, surveillance and reconnaissance] and classified missions," L3 said.

The deal is expected to close in the second half of this year. Next year, Trenchant is slated to add about $65 million to sales.