Leidos Buys L3Harris’ Security Detection and Automation Businesses
Leidos, an information technology, engineering and science solutions and services provider, has purchased the security detection and automation businesses of L3Harris Technologies for $1 billion. The acquisition enables Leidos to deliver a security and detection platform, CEO Roger Krone said in a prepared statement.
This is M&A deal Number 97 that ChannelE2E and MSSP Alert have covered so far in 2020. See the complete M&A deal list here.
L3Harris’ security detection and automation businesses provide airport and critical infrastructure screening products, automated tray return systems and other industrial automation products, according to the company. They employ 1,200 workers and have a sales and services operations footprint that includes more than 20,000 systems deployed worldwide.
What Does the Acquisition Mean for Leidos?
Leidos will provide a security and detection platform backed by L3Harris’ technologies, the company indicated. It will deliver checkpoint security products such as checkpoint CT scanners, people scanners, explosives trace detectors, checked baggage screeners and automated tray return systems.
Furthermore, the acquisition of L3Harris’ security detection and automation businesses expands Leidos’ global footprint, the company noted. It also could help Leidos increase its international security products revenue more than six-fold.
A Closer Look at Leidos
Leidos supports government and commercial organizations in the defense, intelligence, homeland security, civil and health markets. It provides cybersecurity services and solutions to federal government agencies, including security operations center (SOC) and information assurance offerings.
Leidos in 2018 sold the commercial division of its cybersecurity business to Capgemini, a French consulting, technology and digital transformation services provider with a Top 200 MSSP arm. The acquisition was finalized in February 2019.