BAE to shed Flight Systems unit

BAE Systems Inc. will sell its Flight Systems business to Calspan Corp. for $62.5 million and additional considerations based on the next five years' revenues.

Flight Systems, based in Mojave, Calif., performs aircraft modification, operations, flight tests and aerial full-scale target production for military and commercial customers. The company has about 170 employees and additional operations in Florida and Germany.

"This sale is consistent with our strategy to expand BAE Systems' role as a developer and integrator of systems and de-emphasize our role as a subsystems and services provider," said Mike Heffron, president of BAE Systems' Electronics and Integrated Solutions group, which includes the Flight Systems business.

The transaction is subject to regulatory approval and financing by Calspan, a private aeronautical engineering company based in Buffalo, N.Y.

BAE of Rockville, Md., ranks No. 15 on Washington Technology's 2007 Top 100 list of the largest federal government prime contractors.