BAI Aerosystems Acquired by L-3 Communications
January 17, 2005
EASTON, MD: L-3 Communications (NYSE: LLL) announced on Jan. 5, 2005 that it
completed the acquisition of BAI Aerosystems, Inc. on December 21, 2004. Financial
terms of the transaction were not disclosed.
Headquartered in Easton, Maryland, BAI designs, manufactures and integrates unmanned aerial vehicles (UAVs). BAI targets the small (generally classified as less than 300 pounds) UAV segment and presently offers six primary platforms. The principal tactical uses of BAI's aircraft are by the military for remote imaging applications in surveillance missions. BAI also offers a complete set of UAV subsystems, such as avionics and auto pilots, imaging and sensor payloads, ground control stations and support equipment, which are incorporated into its proprietary designs as well as sold to other UAV manufacturers. Founded in 1985, BAI has sold over 1,000 UAVs and currently has aircraft deployed in support of U.S. operations in both Iraq and Afghanistan.
“L-3 Communications has an established presence in the UAV marketplace through our participation on the Predator and Global Hawk platforms,” said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. “BAI has developed a family of highly reliable and flexible tactical UAVs and established a terrific working relationship with the special operations groups in the U.S. Army, Navy and Marines. As part of our ISR and Secure Communications segment, BAI will provide L-3 with a new capability to test, demonstrate and market its broad array of imaging, sensor and detection systems in the fast growing UAV sector of the defense market, as well as provide additional sales opportunities for our products already serving this market.” Mr. Lanza added that BAI will report into L-3's Integrated Systems subsidiary, which is led by Bob Drewes.
TM Capital Corp. served as financial advisor to BAI Aerosystems, Inc. in this transaction.
News of the recent acquisition was well-received locally. “Maryland has one of
the most supportive environments for aerospace and defense companies,” said Department
of Business and Economic Development (DBED) Secretary Aris Melissaratos. “BAI Aerosystems
is a prime example of a homegrown company that has taken advantage of our highly-skilled
workforce, the proximity to federal agencies, military installations and higher
education institutions. As BAI begins a new chapter in the company’s history as
part of L-3 Communications, we offer our continued support and best wishes.”
Headquartered in New York City, L-3 Communications is a leading provider of Intelligence, Surveillance and Reconnaissance (ISR) systems, secure communications systems, aircraft modernization, training and government services and is a merchant supplier of a broad array of high technology products. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies and aerospace prime contractors.
“This is a monumental step in the history of BAI Aerosystems,” said former BAI owner and current President Richard Bernstein. “The resources that L-3 Communications will provide us and the many relationships we have made in the past 19 years will serve as an integral springboard to the future of our company in the aerospace industry. We are proud to now be a part of L-3 Communications and are excited going into 2005.”
To learn more about L-3 Communications, please visit the company’s web site at www.L-3Com.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.
BAI Aerosystems, Inc. is a 20-year old small business located in Easton, MD. The company manufactures small UAV systems, including a range of different aircraft, flight control systems, payloads, and support equipment. BAI products are in use on a daily basis by a growing number of commercial and defense customers, worldwide. For more information about BAI, its products and services, please visit us online at: http://www.bai.aero