AUGUST 10--DRS Technologies Inc. (Parsippany, NJ; www.drs.com) has signed a definitive agreement to acquire the assets and certain liabilities of the Sensors and Electronic Systems (SES) business of The Boeing Company for approximately $84 million, subject to adjustment. SES (Anaheim, CA) provides advanced electro-optical airborne and naval surveillance and targeting systems, high-performance military infrared cooled sensor systems, and cutting-edge infrared uncooled sensor systems for military and commercial applications. The transaction is expected to close during DRS's fiscal third quarter.
Operating as part of Boeing's Battle Management Command, Control and Communications (BMC3) and Strategic Systems business in the Boeing Space and Communications Group, SES has provided products and services for more than 40 years to the US Department of Defense, US defense industry, and international military forces. It maintains extensive engineering, manufacturing, assembly, integration, and product-support capabilities.
Said Mark S. Newman, chairman, president and chief executive officer of DRS Technologies, "The addition of SES to our Electro-Optical Systems Group is expected to increase this segment's annual sales by approximately 50% and will contribute a sizable contract base, supporting multiple, established military platforms and related programs strongly complementing our own. Its diversified revenue streams, significant intellectual property, experienced management team, and well-regarded reputation for large-scale, complex system integration are expected to be strategically significant to our long-term goals for growth in the defense-related electro-optical systems business. This acquisition is expected to add approximately $75 million to our annual sales and be accretive to earnings within DRS's next fiscal year."
The transaction is subject to the satisfaction of customary closing conditions. Bear, Stearns & Co. Inc. is serving as financial advisor to DRS on the transaction.
