L-1 Identity Solutions, a supplier of identity solutions and services, completed the sale of the L-1 intelligence services businesses to BAE Systems. As previously announced, the purchase price includes US$295.8 million in cash and approximately $7.2 million of certain assumed obligations for a total value of $303.0 million.
With the BAE Systems transaction completed, L-1 is comprised of Secure Credentialing Solutions, Biometric and Enterprise Access Solutions and Enrollment Services. The net cash proceeds from the sale of the L-1 intelligence services businesses is being used to repay indebtedness under L-1's secured credit facility including the full amount of the term loans and a portion of the borrowings under the revolving credit facility, leaving a remaining balance of less than $50.0 million.
"We have assembled a group of intelligence businesses that have earned the respect and trust of customers, working alongside them in partnership to help protect national security interests and fight global terrorism across multiple fronts," said Robert LaPenta, Chairman, President and CEO of L-1 Identity Solutions. "Joining forces with BAE gives this team of L-1 professionals the depth of resources and breadth of customer access they will need to bring their critical skillsets to a wider audience and better serve the intelligence community mission, today and in the future. The transaction we've completed with BAE is beneficial to the company and our shareholders in capitalizing on the value we have built in the intelligence services business and represents the completion of an important step toward the consummation of the previously announced sale of L-1."