BAE Systems, Rockville, MD, has agreed to sell its Flight Systems business, Mojave, CA, to Calspan Corporation.
The cash purchase price is $62.5 million plus an additional consideration to be paid pursuant to an earn-out mechanism by reference to the revenues of the business over the next five years.
Flight Systems, with 170 employees, performs aircraft modification, aircraft operations, flight tests, and aerial full-scale targets production for military and commercial customers.
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,”said Mike Heffron, president of BAE Systems’Electronics &Integrated Solutions operating group, which includes the Flight Systems business.
Flight Systems also has operations in Florida and Germany. The Mojave site is certified by the Federal Aviation Administration for aircraft modifications and service life extensions.
BAE Systems is a global defense and aerospace company delivering products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. BAE Systems’ sales exceeded $31.4 billion in 2007.