General Dynamics Advanced Information Systems, a business unit of General Dynamics, has entered into a definitive agreement to acquire Axsys Technologies, for $54 per share of Axsys Technologies' common stock. The cost of the transaction would be $643 million.
The proposed acquisition, which has been approved by the boards of directors of Axsys Technologies and General Dynamics, would be earnings-neutral in 2009 and accretive to General Dynamics' earnings thereafter. The transaction is subject to normal regulatory approvals as well as approval by Axsys Technologies' shareholders, and is expected to close during the third quarter of the year.
Axsys Technologies is a provider in the design and manufacture of high-performance electro-optical and infrared sensors and systems and multi-axis stabilized cameras. Its customers include U.S. military and homeland security agencies, systems integrators that support those customers, and commercial customers in high-performance markets such as aerial and perimeter surveillance applications in law enforcement, energy and broadcast and film production. Axsys Technologies's solutions are typically found in applications that demand fine optical surfaces, high accuracy and tight motion-control tolerances, such as weapon systems, long-range surveillance cameras and imaging telescopes.
"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 tactical ISR market," said Lou Von Thaer, President of General Dynamics Advanced Information Systems. "In addition, we look forward to maintaining and strengthening relationships with Axsys Technologies' existing customers, expanding and diversifying the technical products that General Dynamics is able to offer and pursuing new markets through collaboration among the product experts at each company."