General Dynamics to buy Axsys Technologies

General Dynamics announced today that it plans to acquire imaging technology firm Axsys Tetchnologies. Axsys would be acquired by General Dynamics' Advanced Information Systems business unit for $643 million.

Axsys technology produces a range of cameras and camera technologies in the realm of optical and infrared imaging, and the company is known for its stabilized cameras designed for difficult environments. Its product find their way into military and homeland security usage for both surveillance applications and for use with weapons systems.

The acquisition has been approved by both companies' boards of directors. General Dynamics said the purchase would be earnings neutral in 2009, but is expected to positively affect the company's earnings in following years. According to a statement issued by General Dynamics, Axsys Technologies has a sales backlog of $162.1 million as of late March 2009; General Dynamics is anticipating Axsys to reach sales of $280 million in 2009.

The deal, if approved by Axsys' shareholders, would likely close in the third quarter of 2009.

"Axsys Technologies delivers innovative, high-value products in a market segment that is strategic for General Dynamics Advanced Information Systems," said General Dynamics Advance Information Systems President Lou Von Thaer. "Adding Axsys Technologies' capabilities to our existing intelligence, surveillance and reconnaissance expertise will enable us to further strengthen our portfolio of offerings and discriminators in the high-growth tactical ISR market."