Overwatch Systems sold for $325m

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Textron Systems has reached an agreement to acquire Overwatch Systems for a purchase price of approximately $325m.

Overwatch Systems develops intelligence analysis tools and communications products for the US Department of Defense, the Department of Homeland Security, US intelligence agencies and select foreign militaries.

Headquartered in Morristown, New Jersey, Overwatch Systems has around 385 employees and is expected to generate approximately $105m of revenue in 2006.

‘As with the recent acquisition of Innovative Survivability Technologies (IST), Overwatch products and technologies clearly complement our existing portfolio,’ said Richard J. Millman, president of Textron Systems. ‘This addition of exceptional intelligence analysis capabilities will allow us to more fully address the emerging needs of our government and other customers in this dynamic wartime and global environment while also gaining some of the industry's top talent.’

Millman added, ‘Due to high customer demand and the complementary nature of these products with our existing platforms, we expect this acquisition to result in annual revenues exceeding $300m over the next five years.’

The transaction is subject to normal regulatory approvals and is expected to close by the end of the year.