Integrated Defense Technologies has reached a definitive agreement to acquire Bae Systems’ Advanced Systems Gaithersburg, MD operation in the US for $146 million in cash.
The transaction is expected to close in the first half of the fourth quarter of 2002, and will be accretive to earnings in 2003.
Bae Systems’ Gaithersburg operation, which employs over 300 people, including 96 engineers, is a designer and manufacturer of radio frequency surveillance equipment. With 65-70% of its business sole-sourced, its product offering includes receivers, tuners, demodulators, and signal analysers designed to perform signal intercept, identification, location and analysis functions.
The Gaithersburg operation will be integrated into Integrated Defense’s Communications and Surveillance Systems division, which currently represents approximately 22% of the company’s total revenue, but will represent over 35% of total revenue after the acquisition.
Integrated Defense’s Communications and Surveillance Systems group produces systems for RF transmitters including for the US submarine fleet, microwave subsystems for the Predator and Global Hawk UAVs, and signals intelligence for US and foreign government intelligence collection.
‘In its first 12 months of operation within our Communications and Surveillance Systems group, Gaithersburg is expected to add approximately $81 million to our annual revenue and generate $17 million in EBITDA,’ said Robert B. McKeon, Chairman of Integrated Defense Technologies.