ST. LOUIS (AP) — Boeing said Wednesday it has agreed to acquire combat engineering firm Argon ST Inc. for about $775 million in cash in a deal to expand its capabilities in intelligence gathering and warfare.
Argon ST is a Fairfax, Va., company that develops a variety of systems used in surveillance, reconnaissance and combat.
Boeing's offer of $34.50 per share is a 41 percent premium to Argon's closing price on Tuesday. Argon said its board has approved the takeover and plans to recommend it to shareholders.
The deal is expected to close in the third quarter. Once acquired, Argon will be a standalone subsidiary of Chicago-based Boeing Co. Argon has about 1,000 employees and operates in Virginia, California, Michigan, Pennsylvania, Florida, Maryland and Texas.
Boeing gets roughly half of its revenue from defense, space and security contracts. It's currently locked in a competition with Airbus parent European Aeronautic Defence and Space Co. (EADS) for a $35 billion contract to build a fleet of new refueling jets.