WASHINGTON ― L3 Technologies on Wednesday acquired two information security companies, Azimuth Security and Linchpin Labs. The acquisitions are expected to strengthen L3′s C4ISR, cyber defense and combat systems businesses.

The acquired companies, which will become L3 Trenchant, were purchased for approximately $200 million. But “the purchase price is subject to an upward adjustment of up to AUD$43 million (approximately USD$32 million), payable in L3 common stock," according to an L3 news release. This depends on post-acquisition sales from June 30, 2019, to 2021.

The acquisition follows L3′s $540 million sale of Vertex in May.

“These acquisitions sharpen our capabilities, heighten our responsiveness and advance L3’s prime position as a C6ISR solutions provider,” said Christopher E. Kubasik, L3’s chairman, president and CEO. “We are making targeted investments in cutting-edge technologies and integrating them with existing capabilities to support our domestic and international customers in strategically important business areas.”

In a previous interview with Defense News, Kubasik said the company’s acquisition strategy is based on addressing strategic needs and capability gaps. “In several cases after discussions with our customers and looking at the National Defense Strategy, we’re looking for different technologies and capabilities” he said. " We look at our strategy, we go out and find things to fill the gaps."

Some of the gaps L3 is looking to fill in the U.S. and overseas are related to underwater unmanned vehicles as well as intelligence, surveillance and reconnaissance platforms. Kubasik said he hopes to capitalize on increased interest in sensor and communication technologies.

“Internationally, we visited customers in Taiwan, Japan, Singapore, Saudi Arabia and the United Arab Emirates,” he said. “There is a lot of entrants, especially in the Mideast for ISR platform[s]. … And of course that’s in our sweet spot.”

Canada-based Linchpin Labs specializes in custom software development and brings experience working with government clients on computer network operations, cross-platform and low-level systems development, and information technology services.

Based in Sydney, Australia, Azimuth Security is an information security consultancy firm that focuses on in-depth software analysis, including threat modeling and design, configuration, and source-code review.

“These pioneering intelligence solutions — the ‘I’ in ISR — give our customers an intelligence advantage through next-generation network security and threat mitigation,” said Jeff Miller, L3’s senior vice president and head of the firm’s sensor systems unit.

Daniel Cebul is an editorial fellow and general assignments writer for Defense News, C4ISRNET, Fifth Domain and Federal Times.

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