General Dynamics to acquire Digital System Resources

General Dynamics has entered into an agreement to acquire Digital System Resources, a provider of surveillance and combat systems for submarines and surface ships based in Fairfax, Virginia.

General Dynamics has entered into a definitive agreement to acquire privately-owned Digital System Resources, Inc. (DSR) of Fairfax, Virginia.

The proposed transaction, which has been approved by the boards of directors of both companies, is subject to normal regulatory approvals and is expected to close within 60 days. Terms were not disclosed.

DSR, a provider of surveillance and combat systems for submarines and surface ships, has 450 employees. It will become part of General Dynamics Advanced Information Systems, a unit of the company’s Information Systems and Technology group.

DSR, which was established in 1982, anticipates revenues of approximately $125 million in 2003. The acquisition will be immediately accretive to General Dynamics’ earnings.

‘This is an extremely capable and well-managed company, and a great complementary fit,’ said Kenneth C. Dahlberg, Executive Vice President-General Dynamics Information Systems and Technology group. ‘It has an important niche in electronic warfare and acoustic signal processing technologies for the US Navy.’