BAE Systems North America announced yesterday that it has reached an agreement with STI Industries (STI) to purchase the assets of STI Government Systems for $27 million in cash.
“STI Government Systems scientists and engineers are well respected throughout government and industry for their innovative technology solutions,” said Galen Ho, president of BAE Systems North America’s Information and Electronic Systems Integration Sector. “Their capabilities, particularly in hyperspectral imaging and sensor fusion, will be important elements in support of our Communications, Intelligence, Surveillance and Reconnaissance arena.”
Honolulu-based STI Government Systems, which employs 125 staff, develops solutions for US government customers. Its main areas of expertise include photonics, information technologies and system integration.
Currently, STI Government Systems supports the US Navy in defence applications of its technologies and also provides a variety of services to other government agencies in areas such as pollution mapping and search and rescue.
According to a statement, the acquisition of STI Government Systems is consistent with the BAE Systems’ strategy of acquiring capabilities and technologies that ‘enhance the company’s leadership in key areas.’
“We’re excited that STI Government Systems is joining BAE Systems,” said Ho. “Together we will be able to provide our customers with more innovative solutions to meet demanding defence and security requirements, particularly in detection of submarines, mines, and other objects in the water as well as terrestrial object identification and surveillance. “
Closing of the transaction is expected to occur within 45 days and is subject to completion of regulatory reviews and approvals.