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Print Edition StoriesThursday, June 4, 2009
General Dynamics buying Axsys for $643M
By Mass High Tech Staff
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Optical systems maker Axsys Technologies Inc. has agreed to be acquired by General Dynamics Advanced Information Systems, a business unit of General Dynamics Corp. (NYSE: GD), for $643 million.
The deal comes nearly two months after Axsys confirmed speculation that it was considering a sale, because “downward pressure” on its stock has led to overtures from interested buyers.
General Dynamics AIS, based in Fairfax, Va., will put up $54 for each share of Rocky Hill, Conn.-based Axsys Technologies’ (Nasdaq: AXYS) outstanding common stock. The deal will bring Axsys’ sensor, imaging and intelligence, surveillance and reconnaissance products to General Dynamics, as major defense contractor.
For its part, Axsys already has defense and aerospace customers as its clients, officials said, along with homeland security agencies and commercial customers. Axsys makes high-performance electro-optical and infrared sensors and systems and multi-axis stabilized cameras.
The planned purchase, which has won approval from the boards of directors of Axsys and General Dynamics, is expected to close during the third quarter of the year, pending normal regulatory approval.
Axsys employs about 1,000 workers in facilities in Nashua, N.H., Alabama, California and Michigan. The company reported that it achieved record results for fiscal 2008 with sales of $245.5 million and income from continuing operations of $26.3 million, an increase of 43 percent and 87 percent, compared to fiscal 2007.
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