Kanders & Company to acquire L3Harris Technologies’ antenna and test equipment businesses for $200m

In a strategic move to bolster its position in the defense industry, Kanders & Company, Inc., a prominent U.S.-based single-family office, has announced a definitive agreement to acquire certain antenna and test equipment businesses from L3Harris Technologies (NYSE: LHX) for a total of $200 million. This acquisition signals a significant expansion for Kanders, marking its foray into the burgeoning defense sector.

The transaction will see three distinct business units from L3Harris Technologies integrated into Kanders’ newly established Fisica, Inc. platform. These businesses, with a heritage stretching back to the 1960s, have earned a reputation as expert manufacturers of a wide array of essential defense components. These include airborne and ground-based antennas, electromagnetic systems, and simulators utilized in radar, communications, warning systems, remote sensing, nuclear effects testing, and imaging applications. Positioned to be a key player, Fisica is poised for continued growth and success, serving flagship defense primes and the U.S. Department of Defense.

Warren B. Kanders, the President of Kanders and the Chairman and CEO of Fisica, expressed enthusiasm about the acquisition, stating, “We are excited to announce the agreement to acquire these businesses from L3Harris and partner with existing management to launch a new platform in the defense industry. As the electronic warfare and communications space continues to evolve, we believe Fisica’s product portfolio, long-standing customer relationships and stable program base position the combined businesses to grow both organically and through targeted acquisitions.”

The financial terms of the agreement include Kanders paying L3Harris $175 million in cash upon closing, with an additional $25 million to be paid via a seller note. The completion of this deal is anticipated in the second quarter of 2024, pending the satisfaction of customary closing conditions and obtaining necessary regulatory approvals.

Fisica will operate out of San Leandro, California, with further operations spanning Menlo Park and Simi Valley, California. This strategic location, combined with Fisica’s advanced technology and expertise, is expected to fortify its capacity to meet the increasing demands of the defense sector, ultimately driving growth and innovation within the industry.

This acquisition by Kanders & Company, Inc. represents a strategic pivot into the defense sector, highlighting the growing importance of electronic warfare and communications systems. By consolidating these high-potential units under the Fisica brand, Kanders not only leverages decades of manufacturing expertise but also positions itself at the forefront of defense technology and innovation. The move is indicative of a broader trend within the defense industry, where companies are increasingly seeking to enhance their capabilities through acquisitions, catering to the dynamic needs of defense and government partners.