Britain’s BAE Systems recently said it has agreed to sell its California-based Flight Systems business unit to Calspan Corp. for $62.5 million in cash as it focuses its on its role as a developer and systems integrator.
Terms of the deal include an earn-out provision based on the revenues of Flight Systems over the next five years. The transaction is subject to regulatory approvals and to the receipt of financing by Calspan.
“This sale is consistent with our strategy to expand BAE Systems’ role as a developer and integrator of systems and de-emphasize our role as a subsystems and services provider,” Mike Heffron, president of BAE’s Electronics & Integrated Solutions operating group, said in a statement.
Flight Systems has 170 employees and also has operations in Florida and Germany. Flight Systems does aircraft modification, aircraft operations, flight tests, and aerial full- scale targets production for military and commercial customers. Calspan provides services and systems engineering to the aerospace and automotive markets.