DRS Acquires Night Vision for $42.5 M

PARSIPPANY, N.J., Dec. 16 -- DRS Technologies Inc. announced it has acquired certain assets and liabilities of Night Vision Equipment Co. (NVEC), an Allentown, Pa.-based developer of night-vision products and combat identification systems, for $42.5 million in cash.

NVEC makes image intensification (I2) night vision, uncooled thermal imaging, reflective combat identification and laser-based products for US and international militaries and paramilitary organizations. It maintains research, development and production facilities in Prescott Valley, Ariz., and has production and sales agreements with infrared (IR) and thermal imaging divisions of several US prime contractors.

Mark S. Newman, chairman, president and CEO of DRS Technologies, said, "NVEC is expected to enhance DRS's position as a market leader in uncooled IR sensor and thermal imaging systems, as well as to support our increased access to and participation in homeland defense efforts at the federal, state and local levels. With strong original equipment manufacturer relationships and an extensive catalog of products and accessories, the addition of NVEC to our Surveillance & Reconnaissance Group will broaden our electro-optical product offerings and customer base and, importantly, provide strong sales distribution channels through the Government Services Administration schedule and other government buyers to broadly market DRS's existing uncooled thermal imaging systems and other lightweight, portable military equipment."

NVEC's major product lines -- I2 night vision, thermal imaging, combat identification and laser aimers/illuminators -- are primarily used for soldier systems, enabling day/night vision that support military reconnaissance, surveillance and target acquisition. The company produces image intensification products used in night-vision applications, such as goggles, binoculars and monoculars; consumable combat identification equipment such as IR beacons and thermal panels; short, medium and long-range thermal imagers for weapon sights, handheld units, helmet and mobile or fixed surveillance units; and laser-based products for a variety of applications, including handheld IR illuminators, weapon- and helicopter-mounted IR laser aimers and handheld IR pointers that provide the ability to direct movement and control fire in combat.

DRS Technologies, based in Parsippany, N.J., makes surveillance and targeting systems used in US Army ground vehicle, aircraft and weapons platforms, US Navy ships and soldier systems and is a supplier of thermal imaging sensors, subsystems and systems for ground, sea and air targeting, surveillance and missile guidance systems.

DRS said it financed the acquisition with existing cash on hand.

For more information, visit: www.drs.com