BAE Systems announced that it has entered into an agreement with Esterline Corporation for the proposed acquisition of its wholly-owned subsidiary, Eclipse Electronic Systems Inc. for cash consideration of approximately $28 million.

The Texas-based Eclipse Electronic Systems business employs approximately 90 people and provides highly-advanced intelligence, surveillance, and reconnaissance (ISR) products and services to the US defence and intelligence community. The proposed acquisition of the Eclipse Electronic Systems operations will enhance BAE Systems’ ISR offerings to existing customers, and broaden the potential customer base.

“This proposed acquisition fully aligns with BAE Systems’ strategy to invest in advanced technologies critical to US national security and defence needs,” said Tom Arseneault, Chief Operating Officer at BAE Systems Inc. “By combining Eclipse Electronic Systems’ products with BAE Systems’ existing ISR capabilities, we will be able to support our customers’ requirements for reliable, smaller, lighter, and more power-efficient sensor solutions to capture and harness actionable intelligence.”

The proposed acquisition is conditional upon receiving certain regulatory approvals. It is anticipated the proposed acquisition will be completed during the first quarter of 2015.