BAE Systems makes another acquisition
- By Gail Repsher Emery
- Sep 28, 2004
BAE Systems North America will buy Burlington, Mass.-based Alphatech Inc. for $88.4 million, officials BAE Systems said today.
BAE Systems of Rockville, Md., is a wholly owned subsidiary of BAE Systems plc of Hampshire, United Kingdom. The deal is BAE Systems North America's second acquisition announced this month. On Sept. 11, company officials said they would buy DigitalNet Holdings Inc. of Herndon, Va., for about $600 million, including DigitalNet's $93.25 million debt.
The Alphatech purchase should be final by Dec. 31, according to BAE Systems North America.
Privately held Alphatech employs 322 people who specialize in image and signal processing and intelligent systems for the Defense Department and intelligence agencies. Purchasing the company will expand BAE Systems' capabilities in enterprise engineering, software development and advanced geospatial technologies, said Mark Ronald, president and chief executive officer of BAE Systems.
In addition, the integration of Alphatech's technologies with BAE Systems North America's enterprise engineering and systems integration expertise will improve the company's ability to meet the network-centric warfare requirements of national security and intelligence agencies, according to BAE Systems North America officials.
The Alphatech management team will remain in place after the acquisition, according to Alphatech Chairman Chuck Morefield.
Alphatech, which was founded in 1979 by faculty of the Massachusetts Institute of Technology, has offices in Burlington, San Diego and Arlington, Va. Alphatech had revenue of $51 million for calendar year 2003 and revenue of $32 million for the six months ending in June 2004.
BAE Systems North America employs more than 26,000 people who design, manufacture and support aerospace products, electronic systems and information technology for the U.S. government and commercial customers. The unit has annual revenue of more than $5 billion.
Its parent company, BAE Systems plc, designs, builds and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics and guided weapon systems. The company employs more than 90,000 people and has annual revenue of approximately $20 billion, including revenue from its subsidiaries and joint ventures.
BAE Systems North America executives are evaluating other acquisition opportunities, according to company spokesman John Measell.
"We are always evaluating the landscape. We intend to grow here in North America, through internal growth as well as though acquisition," Measell said.