Move Advances Company Strategy For Growth In Cyber And
Intelligence Markets
Not just for Dreamliners any more
... not that it ever really was ... Boeing and Argon ST announced
Tuesday that they have entered into an agreement for Boeing's
acquisition of Argon ST in an all cash tender offer and merger for
$34.50 per share, or approximately $775 million, net of cash
acquired.
The agreement to acquire Argon ST, a developer of command,
control, communications, computers, intelligence, surveillance, and
reconnaissance (C4ISR) and combat systems, advances Boeing's growth
strategy and expands the company's capabilities to address the
C4ISR, cyber and intelligence markets.
"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."
Founded in 1997 and headquartered
in Fairfax, VA, Argon ST develops sensors and networks designed to
exploit, analyze and deliver information for real-time situational
awareness. In fiscal 2009, the company generated $366 million in
revenues. Argon ST has operating locations in Virginia, California,
Michigan, Pennsylvania, Florida, Maryland and Texas, and has
approximately 1,000 employees.
"Our employee teams know each other well, and we are excited to
now continue our combined support to warfighters and first
responders as one company," said Terry Collins, chairman and chief
executive officer of Argon ST.
Once acquired, Argon ST will be a stand-alone subsidiary of
Boeing and a new division of Boeing Network & Space Systems, a
business within the Boeing Defense, Space & Security operating
unit. Argon ST will continue to be led by Collins and 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.
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.
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