BAE Agrees to Sell Flight Systems Business
(Rockville, Maryland, March 5, 2008) -- BAE Systems today signed a definitive agreement to sell its Flight Systems business, located in Mojave, California, to Calspan Corporation.
The cash purchase price is $62.5 million plus an additional consideration to be paid pursuant to an earn-out mechanism by reference to the revenues of the business over the next five years. The transaction is subject to the receipt of regulatory approvals and to the receipt of financing by Calspan. Flight Systems, with approximately 170 employees, performs aircraft modification, aircraft operations, flight tests, and aerial full-scale targets production for military and commercial customers.
"This sale is consistent with our strategy to expand BAE Systems' role as a developer and integrator of systems and de-emphasize our role as a subsystems and services provider," said Mike Heffron, president of BAE Systems' Electronics & Integrated Solutions operating group, which includes the Flight Systems business. "Flight Systems' 25-year legacy of experience should complement Calspan's capabilities in the aerospace business."
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