Safran To Buy L-1 Identity Solutions For $12 Per Share

French aerospace and defense group Safran has announced to acquire L-1 Identity Solutions Inc ID for $1.09 billion. Safran has offered $12 per share in cash to buy ID, representing a 24% premium to ID's closing price of $9.70 on Friday. According to the deal, L-1 will be selling its government consulting services business to the UK's BAE Systems Plc. BAESY for about $296 million. The company will use the proceeds to repay some of the debt of the group. Safran is expecting to generate annual cost savings of $30 million per year through the acquisition. The acquisition is likely to lift its earnings, excluding one-off charges in the 1st year. Safran CEO Jean-Paul Herteman said, “This will allow us to grow L-1's business, while expanding the reach of L-1's services to other key territories around the world.” ID's shares jumped 19.79% to $11.62 in pre-market trading. Read more from Benzinga's Company news.