Frank Lanza and Robert LaPenta were veterans in the defense industry, having built Loral Corporation. In 1997, they created their own firm, L-3 Communications (NYSE:LLL), which focused on defense electronics and communications.

Now the company is a powerhouse. In the past quarter, it increased sales by 41.1% from the year-ago quarter, to $1.78 billion. Net income increased 34.7% to $102.5 million.

True, the company is enjoying the strong demand for secure communications and intelligence, surveillance, and reconnaissance (ISR) systems, aircraft modernization, aviation products, and so on. But L-3 is using its stock and cash to aggressively buy other companies.

In the past few weeks, L-3 has ramped up its deal-making prowess. In fact, the company has been feasting on divestiture deals. There was a $185 million cash purchase of the propulsion systems business unit of General Dynamics (NYSE:GD), a $90 million purchase of the electron dynamic devices business of Boeing (NYSE:BA), a $42 million purchase of the commercial infrared business of Raytheon (NYSE:RTN), and a $225 million purchase of the marine controls division of CAE (NYSE:CGT).

Its discipline has been critical to the success of L-3's deal-making; that is, focusing on leaders in market niches, unique technologies, and synergies with the L-3 portfolio.

Most studies show that mergers and acquisitions generally result in failure. As companies get bigger and bigger, so do the deals -- and this increases the risk of ultimate failure. But so far, L-3 looks to be staying disciplined.

Fool contributor Tom Taulli does not own shares in the companies mentioned in this article.