Boeing announces Argon acquisition

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Aerospace giant Boeing is to acquire Argon ST, a developer of command, control, communications, computers, combat, intelligence, surveillance and reconnaissance (C5ISR) systems, for approximately $775m (£510m).

Once acquired, Argon will be a stand-alone subsidiary of Boeing and a new division of Boeing Network & Space Systems, a business within Boeing’s Defense, Space & Security division. The company will continue to be led by Dr Terry Collins, chairman and chief executive officer of Argon, and his management team.

Founded in 1997 and headquartered in Fairfax, Virginia, Argon ST generated $366m in revenues in 2009. The company, with offices in Virginia, California, Michigan, Pennsylvania, Florida, Maryland and Texas, has approximately 1,000 employees.

The completion of the transaction is subject to a majority of the outstanding Argon ST shares being tendered, as well as satisfactory completion of other customary closing conditions, including US regulatory approval.

The agreement was unanimously approved by Argon ST’s Board of Directors, which intends to recommend that the company’s stockholders tender their shares in the offer.

Boeing plans to fund the transaction with existing cash and expects the deal to close by the end of September.