ITT to buy EDO

ITT Corp. bolstered its high-end systems integration and defense work with a $1.7 billion bid for EDO Corp.

The companies announced today that they have signed a definitive agreement and the deal is expected to close in early 2008.

"This combination is all about growth and demonstrates our disciplined approach to creating value for our shareholders by expanding from our strong core businesses and entering attractive adjacent markets," said Steve Loranger, chairman, president and chief executive officer of ITT.

ITT was attracted to EDO's defense electronics capabilities which fit well with ITT's sensing and surveillance capabilities, the company said. EDO also has expertise in mobile networking and integration, inference cancellation and antennas ? technologies that will boost ITT's battlefield communications capabilities, the company said.

"We're bringing together two successful defense organizations into one team with one mission: To meet the needs of our customers in support of our nation and its allies," said Steve Gaffney, president of ITT's defense business.

The acquisition brings together two Top 100 companies, with ITT being ranked No. 16 on Washington Technology's 2007 Top 100 list of the largest federal government prime contractors. EDO is ranked No. 56. Both companies have strengths in engineering and professional services.

ITT is paying $56 a share for EDO stock and is assuming about $120 million in debt. On Friday, EDO stock closed at $51.51 a share. ITT shares closed at $64.29.