General Dynamics to acquire Axsys for $643 million

05 June 2009

US defense major General Dynamics Corp Inc. yesterday confirmed a deal to acquire Axsys Technologies Inc., leading maker of high-performance surveillance and imaging systems at a cost of $643 million.
 
The agreed purchase price for Axsys is $54 a share. The company has more than 11.5 million common shares outstanding as of the end of March.

It was announced that boards of both the companies approved the proposed deal. Pending further approvals from regulatory agencies as well as Axsys shareholders, it is expected that the deal would be concluded in the third quarter.

Virginia-based defense contractor said in a statement that the acquisition would be earnings-neutral in 2009 and would be added to General Dynamics' earnings from next year onwards.

It is expected that Axsys will form part of the General Dynamics Advanced Information Systems (GDAIS), a business unit of General Dynamics dealing with mission critical information systems and technologies.

GDAIS president Lou Von Thaer said, ''Axsys Technologies delivers innovative, high-value products in a market segment that is strategic for GDAIS.''

''Adding Axsys Technologies' capabilities to our existing intelligence, surveillance and reconnaissance expertise will enable us to further strengthen our portfolio of offerings and discriminators in the high-growth tactical ISR (Intelligence, Surveillance and Reconnaissance) market.'' Thaer added.