NEW YORK, Dec. 8 (UPI) -- L-3 Communications announced it will sell its National Security Solutions business to CACI International for $550 million in cash.
Company officials say L-3 is reshaping its portfolio, and the sale of National Security Solutions helps L-3 shift focus to areas in which it says it has leading positions.
"The sale of L-3 NSS to CACI aligns directly with this commitment and further sharpens our focus on our higher-returning defense electronics, communications and ISR businesses," L-3 chairman and CEO Michael T. Strianese said in a statement. "The proceeds from the sale will provide L-3 with additional flexibility to continue focusing on a disciplined and balanced capital allocation strategy to drive shareholder value and enhance the market-leading products and systems we provide to our customers."
The transaction is expected to be completed in early 2016, subject to approval from government regulators and customary closing conditions.
National Security Solutions, currently a business subsidiary of L-3 Communications, specialized in cybersecurity defense products and services. The business supports industry, government and military customers, with services including forensic services to deter cyberspace attacks, cloud security architectures, and complex computing solutions.
"We also continue to evaluate our portfolio for additional actions that will enable us to improve L-3's business profile and provide us with the best opportunity to improve the organic sales growth and margin outlook of our business," Strianese added.