this sounds like a lawsuit
L-3 Communications Agrees to Take 53.5% Stake in LogiMetrics, Inc
NEW YORK--(BUSINESS WIRE)--July 13, 2000--
- LMDS technology to extend L-3's presence in broadband wireless
infrastructure market -
L-3 Communications (NYSE:LLL) announced today that the company has agreed to invest approximately $15 million in LogiMetrics, Inc. (OTCBB:LGMTA) in exchange for 53.5% of LogiMetrics' capital stock. L-3 has also agreed to invest an additional $5 million in 2001, for an additional equity interest in LogiMetrics, and will contribute to LogiMetrics certain technologies, upon satisfaction of certain future conditions.
Based in Bohemia, NY, LogiMetrics designs, manufactures and markets broadband wireless communications infrastructure equipment, subsystems and components used to provide Ka-band point-to-multipoint (PMP) distribution services to both terrestrial and satellite markets. Among the services that use this technology are high-speed Internet access, real-time multimedia file transfer, remote access to corporate local area networks, interactive video, video-on-demand, video conferencing, and telephony. LogiMetrics' customers include Newbridge Networks, Nortel, NASA, Raytheon, Cable AML, 3COM, and the United States Air Force.
"The broadband wireless communications infrastructure market is expected to be a multi-billion dollar opportunity in the next few years, and L-3 has been looking for technologies that expand our capability to supply companies offering Local Multipoint Distribution Services (LMDS)," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications.
"LogiMetrics brings with it a first-rate customer base and proprietary, solid-state LMDS transceivers that, when combined with our Narda subscriber units, give us a significant advantage in this rapidly growing market," continued Mr. Lanza. He noted that L-3's investment will provide LogiMetrics with sufficient working capital to fund production levels necessary to fulfill existing contracts that will achieve substantial rates in 2001.
"L-3 is making this investment at a critical time for LogiMetrics and for the industry," said Mr. Lanza. "LogiMetrics has exceptional technology, and L-3 has the financial resources and management talent to fully capitalize on the opportunities in this market."
Under the terms of the agreement, L-3 will also have the right to approve four directors of the company, giving L-3 control over LogiMetrics' operations. LogiMetrics has terminated its existing letter of intent with Signal Technology Corporation.
The investment in LogiMetrics adds to L-3 Communications' product offerings in commercial communications and transportation products. These products, adapted from key defense technologies, are expected to generate approximately $500 million in revenues in 2000. L-3 Communications' other emerging commercial technology opportunities include explosive detection systems, wireless local loop, terrestrial radios and earth stations; network encryption, key management and risk management and intrusion; medical digital archiving systems; and power delivery products, switching and event recorders for the transportation industry.
Headquartered in New York City, L-3 Communications is a leading merchant supplier of secure communications systems and products, avionics and ocean products, training products, microwave components and telemetry, instrumentation, space and wireless products. Its customers include the Department of Defense, selected U.S. government intelligence agencies, aerospace prime contractors and commercial telecommunications and cellular customers.
To learn more about L-3 Communications, please visit the company's web site at www.L-3Com.com. |
