Purchases Massachusetts-Based Defense Company For $8.7 Million

Less than 24 hours after its board approved the sale of the company's shares in Airbus, BAE Systems reached a definitive agreement with Massachusetts-based National Sensor Systems (NSS) to purchase all of the shares of the company for $8.7 million in cash -- the first of what may be several buyouts of defense subcontractors.

As Aero-News reported in April, BAE Systems originally planned to sell its shares in the troubled planemaker for approximately $5 billion, in order to provide capital for investment into defense companies -- especially those in North America.

That figure later dropped by $1.5 billion, however, after an independent auditor devalued Airbus following the news of another delay to its upcoming A380 program, as well as management shakeups stemming, in part, from a rumored stock scandal.

NSS, a privately held company based in Acton, MS specializes in the development of electrooptical sensor systems for aerospace and defense applications. NSS also provides gimbal and stabilization systems to the Department of Defense and other government agencies. The company employs 20 engineers and scientists.  

Walt Havenstein, president of BAE Systems Electronics & Integrated Solutions headquartered in Nashua, NH said, "NSS' technology expertise will help BAE Systems expand its capabilities in airborne sensors, electronic warfare and communications. In turn, we expect to take that expertise to the next level of innovative performance."  

Steven Wein, NSS president, said, "We are excited to be joining a true leader in the defense electro-optics arena and look forward to continuing our growth in the high performance optical systems and airborne stabilization markets."  

The parties expect to close the transaction promptly upon receipt of regulatory approvals. BAE's sale of its shares in Airbus -- representing 20 percent ownership in the company -- to primary stockholder EADS will also require the approval of its shareholders.

FMI: www.baesystems.com, www.nationalsensorsystems.com