The investment firm Kanders & Company last Friday said it has agreed to acquire three businesses for $200 million from L3Harris Technologies [LHX] involved in antennas and test equipment, which will be combined into a new company called Fisica, Inc.
The non-core businesses L3Harris is divesting produce airborne and ground-based antennas, electromagnetic systems and simulators for applications across radar, communications, warning systems, remote sensing, and nuclear effects testing and imaging. The businesses are currently part of the L3Harris Space & Airborne Systems segment and have about 375 employees.
The acquisition is expected to close during the second quarter of 2024 and is subject to regulatory approval.
“As the electronic warfare and communications space continues to evolve, we believe Fisica’s product portfolio, long-standing customer relationships and stable program base position the combined businesses to grow both organically and through targeted acquisitions,” Warren Kanders, president of Kanders & Company and CEO of Fisica, said in a statement.
Kanders is also the chairman and CEO of Cadre Holdings [CDRE], which manufactures and distributes safety gear, body armor, and related products to first responders, federal agencies, and other customers through various brands that include Safariland, ProTech, and others. Kanders also was the CEO of Armor Holdings before selling the company to BAE Systems in 2007.
Fisica will be based in San Leandro, Calif., with additional operations in Menlo Park and Simi Valley, Calif. Kanders said that his firm is partnering with the management of the acquired businesses to launch Fisica.
Deal terms include $175 million in cash and a $25 million seller note. Houlihan Lokey is serving as financial advisor to L3Harris on the deal. Kanders did not have a financial advisor.