L-1 Identity Solutions buys SpecTal
- By David Hubler
- Sep 12, 2006
L-1 Identity Solutions, a provider of identity and asset security systems for government and commercial customers, has entered into a definitive agreement to acquire SpecTal, a privately held provider of comprehensive security and intelligence solutions to the intelligence community.
Under the terms of the agreement, L-1 will pay SpecTal shareholders $100 million in cash. They have the opportunity to earn as much as an additional $10 million if critical performance thresholds are reached. The acquisition is expected to be funded primarily by bank debt, according to an L-1 statement.
The transaction is expected to close next month and is subject to meeting a number of customary precedent conditions, including obtaining regulatory approval.
L-1 Investment Partners, a Stamford, Conn.-based private management investment firm, created L-1 Identity Solutions last month through the merger and acquisition of Viisage Technology and Identix.
SpecTal was founded in 1999 by the husband-and-wife team of John Cross and Louise Brouillette.
Based in Reston, Va., SpecTal will give L-1 a stronger presence in the federal market, according to the statement. The acquired company offers government consulting, counterintelligence, counterterrorism and threat vulnerability assessment.
Ann Holcomb, current SpecTal vice president, will become president, and Ron Hammond and Ed Balint will continue as executive vice presidents. The SpecTal team comprises former senior intelligence officials, and about 95 percent of the company’s 325 employees have top-secret security clearances.
“SpecTal will enhance our relationships within the intelligence community and provide additional opportunities for us to develop and sell products to an expanded customer base,” said Robert LaPenta, chairman, president and chief executive officer of L-1, in the statement.
“We believe that L-1 is the right company to acquire SpecTal as it will give the company access to additional markets and provide great opportunities for our leadership team and the entire organization,” Cross said.
SpecTal’s revenue is expected to be about $60 million for the fiscal year ending Dec. 31.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.