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Britain’s BAE Systems on Thursday said it has agreed to acquire Eclipse Electronic Systems, Inc. from Esterline Corp. [ESL] for $28 million in cash, boosting its capabilities in intelligence, surveillance and reconnaissance products and services.
BAE said that the deal will broaden its potential customer base and enhance its ISR offerings to existing customers. Texas-based Eclipse has about 90 employees and provides ISR products and services to the defense and intelligence community.
“By combining Eclipse Electronic Systems’ products with BAE Systems’ existing ISR capabilities, we will be able to support our customers’ requirements for reliable, smaller, lighter, and more power-efficient sensor solutions to capture and harness actionable intelligence,” Tom Arsenault, chief operating officer at BAE’s U.S.-based BAE Systems, Inc., subsidiary, said in a statement.
The deal is expected to close in the first quarter of 2015 pending regulatory approvals.
Esterline said Eclipse, along with several other properties it plans to sell, are non-core business units. The other businesses that Esterline is divesting include Wallop Defence Systems, a small distribution business within its Avionics & Controls Segment, and Pacific Aerospace and Electronics.
Esterline recorded a $49.5 million after-tax loss in its fourth quarter results based on the estimated fair values of the businesses it is shedding.
