Security News > 2020 > February > Leidos Buys L3Harris Security and Automation Business for $1 Billion
Reston, VA-based Leidos Holdings has announced a definitive agreement to buy the airport security and automation businesses from UK-based L3Harris for $1 billion in cash.
"The agreement provides a stable path forward for the Security & Detection Systems and MacDonald Humfrey Automation businesses, while enabling L3Harris to focus its resources on core technologies," said William Brown, chairman and CEO at L3Harris.
Leidos sees three primary benefits from the purchase: an expanded product portfolio, diversified revenue stream through an increased international presence, and greater scale through the addition of a new global airport sales channel across the full Leidos portfolio of product and service solutions.
"The addition of this technology to the Leidos portfolio," said a Leidos company statement, "Will enhance the company's offerings in a global security product market projected to grow in excess of the federal budget."
The acquisition also comes less than two years after Leidos sold its own Leidos Cyber assets - formed earlier through the merger of Lockheed Martin's corporate division, Industrial Defender, and Leidos' own commercial cybersecurity business - to Capgemini for an undisclosed amount.