L-3 Acquires ForceX

L-3 Communications announced that is has acquired ForceX, Inc., a Nashville-based ISR company focused on providing mission management software and geospatial application technology programs, with products including cueing system software, hardware and video algorithms, and wide-area sensor integration solutions and software.  A significant amount of the company's revenue comes from the US Air Force.  The business will be renamed L-3 ForceX and will be integrated into L-3's Integrated Sensor Systems (ISS) sector with the Electronic Systems business segment.  

According to the company's press release, “ForceX complements L-3’s core business, enhancing our product and system capabilities to compete in new markets, and expands our customer base.”

The transaction closed on October 13, 2015.  Deal terms were not disclosed, however the goodwill and other intangible assets from the acquisition are expected to be deductible for income tax purposes suggesting the deal was structured as a stock purchase with a 338(h)(10) election.  The acquisition is projected to add approximately $30M in revenue for the year ending December 31, 2016 and is expected to be immediately accretive.  KippsDeSanto advised ForceX on the transaction.