Completes acquisition of Boeing Commercial Electronics unit, avionics and engine/flight control electronics technology

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, Wash., 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.

FMI: www.baesystems.com