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BAE Buys Boeing Electronics Unit (Aug. 16)

BAE Systems today announced it has completed the acquisition of Boeing’s Commercial Electronics unit, a developer and producer of avionics products and systems for commercial aircraft. The acquisition of the Commercial Electronics unit will increase BAE Systems’ already significant presence in commercial aircraft subsystems.

The Commercial Electronics business, which had 2003 sales of about $170 million, will become part of BAE Systems’ Platform Solutions Sector, which provides a broad range of capabilities and products for commercial and military aircraft. Terms of the transaction were not disclosed.

“With decades of experience in engine control and flight control electronics on a broad range of commercial aircraft, BAE Systems is very familiar with the needs of the civil aviation community,” said James Scanlon, Platform Solutions Sector president. “Commercial Electronics is a highly capable organization, and we are proud to welcome its employees into the BAE Systems family.”

The Commercial Electronics business employs about 800 people in Irving, Texas, and Everett, Washington, and operates equipment service centers in London and Singapore.

The acquisition is consistent with BAE Systems’ strategy of acquiring profitable businesses with strong, differentiated technology that will enable BAE Systems North America to bolster its capabilities and provide integrated solutions for major customers, Scanlon said. The Boeing unit will build on BAE Systems’ leadership in aircraft flight and engine control systems, adding capabilities that include flight-deck systems, aircraft systems control and monitoring, and data and electrical distribution.

BAE Systems will pursue opportunities to expand the business base of the commercial unit -- historically an internal supplier to Boeing -- by offering its capabilities to other customers.

BAE Systems is an international company engaged in the development, delivery, and support of advanced defense and aerospace systems in the air, on land, at sea, and in space. The company designs, manufactures, and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems.

BAE Systems has major operations across five continents and customers in some 130 countries. The company employs more than 90,000 people and generates annual sales of approximately £12 billion through its wholly owned and joint-venture operations.

BAE Systems North America is a high-technology U.S. company employing more than 25,000 people who live and work in some 30 states, the District of Columbia, and the United Kingdom. The company is dedicated to solving its customers’ needs with highly innovative and leading edge solutions across the defense electronics, systems, information technology, and services arenas.

BAE Systems Platform Solutions serves the aerospace and defense community with capabilities and products that improve operational safety and enhance mission effectiveness. Platform Solutions supports a wide range of military and commercial platforms, including fixed-wing and rotary-wing aircraft, ground vehicles, and unmanned vehicles with capabilities in vehicle management, human-machine interface, precision navigation, all-weather operation, power management, and mission information management. A unit of BAE Systems North America and based in Johnson City, New York, Platform Solutions employs more than 6,000 people at facilities in the United States and United Kingdom.

BAE Completes Acquisition of Boeing Commercial Electronics Unit