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Thu, Jan 06, 2005

L-3 Communications Acquires BAI Aerosystems

Supplier of Tactical UAVs to US Military

L-3 Communications says it completed the acquisition of BAI Aerosystems, Inc. on December 21st. Financial terms of the transaction were not disclosed.

Headquartered in Easton, MD, BAI designs, manufactures and integrates unmanned aerial vehicles (UAVs). BAI targets the small (generally classified as less than 300 pounds) UAV segment and presently offers six primary platforms. The principal tactical uses of BAI's aircraft are by the military for remote imaging applications in surveillance missions. BAI also offers a complete set of UAV subsystems, such as avionics and auto pilots, imaging and sensor payloads, ground control stations and support equipment, which are incorporated into its proprietary designs as well as sold to other UAV manufacturers. Founded in 1985, BAI has sold over 1,000 UAVs and currently has aircraft deployed in support of US operations in both Iraq and Afghanistan.

"L-3 Communications has an established presence in the UAV marketplace through our participation on the Predator and Global Hawk platforms," said L-3 Chairman and CEO Frank C. Lanza. "BAI has developed a family of highly reliable and flexible tactical UAVs and established a terrific working relationship with the special operations groups in the US Army, Navy and Marines. As part of our ISR and Secure Communications segment, BAI will provide L-3 with a new capability to test, demonstrate and market its broad array of imaging, sensor and detection systems in the fast growing UAV sector of the defense market, as well as provide additional sales opportunities for our products already serving this market."

Lanza also said BAI will report into L-3's Integrated Systems subsidiary, which is led by Bob Drewes.

FMI: www.L-3Com.com

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