L-1 Identity Solutions completes purchase of SpecTal
- By David Hubler
- Oct 23, 2006
L-1 Identity Solutions has completed the acquisition of privately held SpecTal, a provider of consulting services to the intelligence community.
L-1 Identity Solutions, formed earlier this year from the merger of Viisage Technology and Identix, said it paid SpecTal shareholders $100 million in cash. L-1 Identity Solutions is based in Stamford, Conn., but it said SpecTal’s business operations will remain in Reston, Va.
Established in 1999, SpecTal provides comprehensive security and intelligence solutions, specializing in government consulting, training and technology development, L-1 said. The company has an estimated backlog in excess of $290 million, increased from $140 million when the intent to acquire SpecTal was announced in September. SpecTal’s revenue is expected to be about $60 million for the year ending Dec. 31, 2006.
“As an L-1 Identity Solutions company, SpecTal will serve an important role in our efforts to continue to provide value to the U.S. intelligence community to aid in its fight against global terrorism and crime,” Robert LaPenta, chairman, president and chief executive officer of L-1 Identity Solutions, said in the statement. “Additionally, SpecTal affords us the opportunity to widen the footprint of L-1 Identity Solutions companies, providing new opportunities for us to develop and sell our identity solutions and services to a wider set of customers.”
Under terms of the deal, SpecTal shareholders have the opportunity to earn as much as an additional $10 million in consideration if key performance thresholds are reached. L-1 said the acquisition was funded by a five-year, $150 million revolving credit facility led by Bear Stearns and Bank of America, and including Credit Suisse, Wachovia, Société Générale and TD Bank Financial Group.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.