Boeing (NYSE: BA) announced today it had agreed to acquire defense-equipment maker Argon ST (Nasdaq: STST) for an estimated $775 million.
“Combining the strength of Boeing with the experience of Argon ST will significantly accelerate our capabilities in sensors, communications technologies and information management, ” said Dennis Muilenburg, president and CEO of Boeing Defense, Space & Security. “Today’s announcement follows two years of partnering with Argon ST’s talented employees who, like Boeing employees, take pride in developing and deploying world-class engineering solutions for our customers.”
Once acquired, Argon ST will be a stand-alone subsidiary of Boeing and a new division of Boeing Network & Space Systems. Collins will continue to lead Argon ST with his management team, which will help ensure a seamless transition for employees and customers.
“As part of Boeing, Argon ST will continue to provide leading-edge network-based communications solutions for domestic and international customers including the U.S. Navy, the U.S. Air Force and the Department of Homeland Security so they can continue to execute their critical missions, ” said Roger Krone, president of Boeing Network & Space Systems. “We’re confident that this combined team will be able to achieve great things together in the future.”
The transaction is expected to close by the end of the third quarter 2010. The completion of the transaction is subject to a majority of the outstanding Argon ST shares being tendered, as well as satisfactory completion of other customary closing conditions, including U.S. regulatory approval.
According to Argon ST, “The definitive agreement was unanimously approved by Argon ST’s board of directors, and Argon ST’s board intends to recommend that the company’s stockholders tender their shares in the offer. Boeing plans to fund the transaction with existing cash. The acquisition is expected to have an immaterial impact on Boeing’s earnings.”
