Safran has finalized the acquisition of L-1 Identity Solutions, an identity management solutions provider in the United States, for a total cash amount of $1.09 billion ($12 per share).
L-1’s businesses (biometric and identity management solutions: access control, secure credentialing and enrollment services) generated sales exceeding USD 450 million in 2010. L-1’s financial results will be included in Safran’s consolidated financial statements.
L-1 will join Safran’s existing security business, operating as Morpho, and will be renamed MorphoTrust. The new company will be partly managed as a proxy structure, thus providing appropriate protection for US national security. Run-rate operating cost synergies are expected to represent approximately $30 million per year, and are expected to be fully realized within 18 to 24 months after closing.
Assuming this acquisition had been completed in 2010, Safran’s security business sales would have totalled Euro 1.4 billion in 2010, with a total of more than 7,200 employees of which 2 200 are in the United States.
Jean-Paul Herteman, Chairman and CEO of Safran, said: “We are delighted to have finalized this transaction, which is perfectly aligned with the Group’s development strategy in the security business. L-1 is a very impressive company, which has become a major player in the identification market in just a few years, especially in the United States. L-1 offers an excellent fit with our own security business, in terms of both technologies and geographic footprint, clearly enhancing our product offering and customer service in this dynamic sector, and consolidating our global leadership in the market for high-tech security solutions.“