BAE Systems signed a definitive agreement on March 5 to sell its Flight Systems business, located in Mojave,
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.”
Flight Systems also has operations in
About BAE Systems
BAE Systems is the premier global defense and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 97,500 employees worldwide, BAE Systems' sales exceeded $31.4 billion in 2007.
