JANUARY 4--OSI Systems Inc. (Hawthorne, CA; www.osi-systems.com) has signed a Letter of Intent with L-3 Communications to purchase certain assets that will be acquired by L-3 from PerkinElmer Inc. as part of its purchase of PerkinElmer's detection-systems business. This transaction is expected to be accretive to OSI System's earnings.
Closing is subject to numerous conditions including the satisfactory closing of L-3's purchase from PerkinElmer of the detection systems business, government and regulatory approval, as well as the execution of a definitive purchase agreement between OSI Systems and L-3.
ARGUS grants were issued by the FAA to L-3, Perkin Elmer, and Invision Technologies for the development of a certified, automated explosive-detection system for mid-sized, regional airports. ARGUS is envisioned as a lower-cost technology to complement the larger, higher-throughput current FAA-certified explosive-detection systems. The FAA has also issued a single grant for the development of an even smaller, detection device--BANTAM. OSI Systems is the lone recipient of this phase-two contract.
"The acquisition of PerkinElmer's ARGUS technology, when combined with our recently announced FAA grant for the development of BANTAM, gives us a solid technology footing in the potential market for certified explosive-detection systems, said Deepak Chopra, OSI Systems Chairman and CEO. "When completed, this transaction will position OSI Systems as a player in aviation security systems, large cargo and freight scanners, metal detectors, and the emerging marketplace for body scanning and automated explosive detection systems."