Calspan acquires BAE Systems division

Niagara Wheatfield Tribune, March 13, 2008

Calspan Corporation and BAE Systems Inc have jointly announced an agreement under which the Mojave, Calif.-based Flight Systems division of BAE will be acquired by Calspan.

The transaction will greatly expand Calspan’s experimental flight testing capability, more than doubling the company’s fleet of test aircraft.

“This acquisition will quite literally help our business take off,” said Louis H. Knotts, president. “The combined company will be well positioned at the cutting edge of aeronautics technology, aircraft modification, flight research, and unmanned aerial testing and simulation.”

The acquisition will increase Calspan’s total U.S. workforce from 241 employees to approximately 425, including the creation locally of 12-15 new business administration and support staff jobs.

John Yurtchuk, senior vice president at Calspan, said the company’s annual revenue will exceed $100 million following the acquisition and should grow to $250 million by 2012.

“It moves Calspan to the next rung on the ladder in terms of U.S. and foreign government research, special projects with the U.S. military and its allies, work with our commercial customers, and access to additional capital for future growth,” said Yurtchuk.

The closing is subject to the receipt of regulatory approvals and receipt of financing. The transaction is expected to close in the second quarter.