DRS to Purchase Integrated Defense Technologies

Under a signed agreement, defense electronics supplier Integrated Defense Technologies (IDT) Inc. of Huntsville, Ala., will merge with a wholly owned subsidiary of DRS Technologies Inc. of Parsippany, N.J., to form a midtier defense technology company. DRS will acquire the outstanding stock of IDT for common stock and $17.50 per share in cash. Total consideration for the acquisition is estimated at $550 million, including an IDT debt to be refinanced.

Besides substantially expanding DRS' intelligence agency business, the acquired company will contribute a product base, customer relationships and program additions in power technologies. Subject to regulatory approvals and closing conditions, the completion of the transaction is expected by the end of the year.