STAMFORD, Conn., 12 September 2006. L-1 Identity Solutions Inc. has entered into a definitive agreement to acquire privately-held SpecTal LLC, a top provider of consulting services to the United States Intelligence Community.
SpecTal provides security and intelligence solutions, specializing in government consulting, training, and technology development.
Under the terms of its definitive agreement with SpecTal, L-1 Identity Solutions will pay SpecTal shareholders $100 million in cash. SpecTal shareholders have the opportunity to earn up to an additional $10 million in consideration if key performance thresholds are reached. The acquisition of SpecTal is expected to be funded primarily by bank debt.
SpecTal's customers are primarily the U.S. Intelligence and Military communities. The company will provide L-1 Identity Solutions with a strong Federal presence.
The SpecTal team is comprised of former Senior Intelligence Community leaders and recipients of numerous awards and commendations for unique accomplishments and career services. The company offers a broad range of expertise, including government consulting, counterintelligence, counterterrorism and threat vulnerability assessment.
The company has an estimated backlog in excess of $140 million. SpecTal's revenue is expected to be approximately $60 million with $9 million in EBITDA for the year ending December 31. Closing of the SpecTal transaction, which is anticipated to occur in October 2006, is subject to the satisfaction of a number of customary precedent conditions, including obtaining customary regulatory approval.
