It is apparent that government contracts make up a sizeable portion of L-3’s revenue, and with the current budget cuts and military drawdown underway, the company will have to look to other avenues to continue its growth and make up for losses. One such avenue would be an increased number of acquisitions. Just this year, L-3 acquired Data Tactics Corp, a move that reflects their current strategy of expanding business in the aerospace, electronics systems, and communications markets.
The acquisition added big data analytics and cloud computing services to their portfolio. The acquisition was the 2nd major deal that was made in the last 6 months. L-3 Communications is an American-based company that specializes in command and control, communications, intelligence, surveillance, and reconnaissance systems and products, as well as avionics, ocean products, space, and navigation products. Its largest customers are the US Department of Defense, the Department of Homeland Security, NASA, various US intelligence agencies, aerospace manufacturers, and commercial telecommunications customers.