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Mid-tier defense conglomerate L-3 Communications has signed an agreement to acquire maritime electrical and electronics system supplier SAM Electronics GmbH (SAM) for U.S. $150 million in cash, subject to customary closing conditions and regulatory approvals. L-3 sees the sale as a fit with its existing power and controls business, and believes this will expand their opportunities in both new ship integration and power conversions as more ships migrate from mechanical systems to electric power. It also provides cross-geographic opportunities to SAM’s products in the USA, and some of L-3’s products in Germany and Asia – if the companies can execute.

The acquisition is expected to be completed in the first half of 2006 and to be slightly accretive to L-3’s earnings. SAM is expected to generate approximately $320 million of sales for the year ending December 31, 2006. No word yet on where SAM will fit into L-3’s revised corporate structure, though “Specialty Products” seems a good bet.