BAE SYSTEMS yesterday said it has agreed to sell its Pennsylvania-based Surveillance and Attack business to Cobham plc, for $240 million in cash as it de- emphasizes its role as a subsystem provider.
The deal is expected to close in the first quarter of 2008. Both BAE and Cobham are headquartered in the United Kingdom and both have a significant amount of there business in the United States.
Cobham said the deal complements its existing Defence Electronic Systems microwave business based in the United States, bringing in additional subsystem product and design resources. The BAE unit develops and supplies electronic warfare subsystems used for stand-off radar and communication jamming and also self-protection radar warning for a variety of U.S. military aircraft. Cobham said the acquisition will accelerate its plans to establish itself as a premier radio frequency front-end subsystem company.
Cobham will rename its new business unit Sensor and Antenna Systems, Lansdale, Inc. The unit has 400 employees, 90 of whom are engineers. Cobham said the management team will remain with the business unit.
While BAE has mostly been buying up companies in the United States, earlier this year its divested itself of its Inertial Products Business, which it sold to J.F. Lehman & Co. for $140 million.