BAE in $300m counter-terror expansion

20th Sep 2010 07:04

BAE Systems has strengthened its position in the US counter-terrorism market with the acquisition of the consultancy division of American firm L-1 Identity Solutions.The UK weapons group will pay $296m in cash for the L-1 division, which comprises three firms SpecTal, Advanced Concepts and McClendon. The consideration will be funded from BAE Systems' existing cash resources. BAE added that the L-1 businesses complement the activities of its existing US-based Intelligence & Security arm and the acquisition is part of its strategy to develop its customer support and services business. The acquisition needs US regulatory approval and is expected to close in the fourth quarter of 2010.