BAE Systems grabs STI Industries division

BAE Systems North America has agreed to acquire STI Government Systems, a division of Honolulu-based STI Industries Inc., for $27 million in cash, the company said. The deal is expected to close in 45 days.

The acquisition gives BAE Systems additional expertise in developing solutions that help defense and security agencies detect and identify water-based and terrestrial objects.

STI's capabilities, particularly in hyperspectral imaging and sensor fusion, "will be important elements in support of our communications, intelligence, surveillance and reconnaissance arena," said Galen Ho, president of BAE Systems North America's Information and Electronic Systems Integration sector.

STI Government Systems brings with it expertise in photonics, information technologies and systems integration. The company works with the Navy to develop defense applications of its various technologies. It also provides services to other agencies in areas such as pollution mapping and search and rescue.

BAE Systems North America is a division of Farnborough, U.K.-based BAE Systems plc, which ranked No. 10 on Washington Technology's 2003 Top 100 list. The 2004 rankings are due out in May.