L-3 Communications announced that it is to acquire Danaher's Kollmorgen Electro-Optical business for $210 million in cash in order to broaden its product range. Kollmorgen Electro-Optical designs and builds specialised equipment including submarine photonics systems, ship fire control systems, visual landing aids, ground electro-optical and sensor-cueing systems. Kollmorgen Electro-Optical employs 550 people and is headquarted in Massuchussets.

Kollmorgen Electro-Optical is forecast to generate $170 million for 2012, with estimated earnings of $30 million. Kollmorgen Electro-Optical will become part of L-3 Communications' Integrated Sensor Systems business. The Integrated Sensor Systems Sector currently includes L-3's existing electro-optical/infrared (EO/IR) businesses addressing the air, ground and maritime markets and is reported in L-3's Electronic Systems segment.

L-3 Communications employs around 60,000 people and is a leading defence contractor in C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems, aircraft modernization and maintenance, and government services. L-3 generated 2010 sales of $15.7 billion.

Report: All Defence Market Analysis