Northrop Grumman to Buy Essex in $580M Deal
LOS ANGELES, Nov. 8, 2006 -- Defense contractor Northrop Grumman Corp. announced today that it will acquire Essex Corp. for $24 per share, a total of approximately $580 million.
Northrop Grumman said it expects the transaction, which also includes the assumption of Essex's debt, to close in the first quarter of 2007 and to be neutral to 2007 earnings and accretive beginning in 2008. It has been approved by both companies' board of directors.
Essex, based in Columbia, Md., provides signal processing services and products, and advanced optoelectronic imaging for US government intelligence and defense customers. The company will become a business unit within Northrop Grumman's Mission Systems sector.
"Essex expands our position in C4ISR and further enhances our ability to serve our customers in the intelligence and defense communities. This transaction complements our existing capabilities and is consistent with our goal of investing in businesses that demonstrate the potential for strong and sustained growth," said Ronald D. Sugar, Northrop Grumman chairman and CEO.
Jerry Agee, president of Northrop Grumman Mission Systems sector, said of Essex, "Its strengths in the areas of signal processing, information assurance, optics and optical processing, and systems engineering and integration will be a significant complement to our activities supporting the intelligence community and the Department of Defense."
The deal is subject to customary conditions, including approval by Essex's shareholders. For more information, visit: www.northropgrumman.com