L-3 To Buy Implant Sciences' Explosives Trace Detection Assets - Quick Facts

(RTTNews) - L-3 Communications Holdings, Inc. (LLL) said it has entered into an asset purchase agreement or APA to acquire certain assets of Implant Sciences Corp. (IMSC.OB) for $117.5 million in cash, plus the assumption of specified liabilities.

Pursuant to the terms of the APA, L-3 will acquire the explosives trace detection or ETD business of Implant. The company intends to finance the acquisition using its existing cash on hand.

L-3 will acquire the worldwide rights to the QS-B220 desktop and the QS-H150 handheld ETD systems as well as all other product and technology assets of Implant Sciences.

Over 5,000 of IMSC's non-radioactive ion mobility spectrometry systems have been deployed in more than 70 nations for aviation security, infrastructure protection, mass transit security, military operations, VIP protection, and corporate security.

Wilmington, Massachusetts-based Implant has recently entered into Chapter 11 Bankruptcy protection, and the consummation of the APA will be subject to approval of the U.S. Bankruptcy Court.

L-3 is entitled to a breakup fee and expense reimbursement if it does not prevail as the successful bidder at any subsequent auction in accordance with the terms of the APA.

Following a successful acquisition, the acquired assets will be integrated into L-3's Security & Detection Systems division within its Electronic Systems business segment.

Implant's ETD products have received approvals and certifications from several international regulatory agencies, including the TSA in the U.S., ECAC in Europe and the Ministry of Public Safety in China. In September 2016, the TSA placed a delivery order for 1,353 of the QS-B220 systems and related supplies.

Implant said it intends to use the cash from the sale of the ETD asset to pay its creditors and continue on with the strategic plan as previously communicated to its shareholders.