Defense giant BAE Systems will buy Tucson-based Advanced Ceramics Research Inc. to gain the local company's technology in small, unmanned aircraft, the companies said Thursday.
The acquisition through a stock purchase is worth $14.7 million, said BAE spokesman Greg Caires.
Privately held Advanced Ceramics Research, which employs 60 people and is headquartered at 3292 E. Hemisphere Loop, will become part of BAE Systems Inc., headquartered in Rockville, Md. BAE is one of the world's largest defense contractors and has facilities in Phoenix.
The companies hope to have regulatory approval and close the deal by the end of June.
Caires called it too early to say what impact the deal will have on employees in Tucson.
Officials of the local company did not return phone calls Thursday.
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"We certainly have no plans to move out of Tucson at this point," Caires said. "This purchase was made to grow the (unmanned aircraft) business that ACR started. Our company has had a track record of pretty significant growth when we do acquire businesses."
University of Arizona scientists founded Advanced Ceramics Research in 1989 to develop ceramic composite material and later branched into producing small, unmanned aircraft that carry cameras and sensors for military and other uses. The sleek Silver Fox, for example, can be launched from the back of a Humvee to let soldiers see what's over the next hill.
The company began manufacturing some products in a joint venture with the San Xavier Development Authority on the Tohono O'odham Reservation near Tucson.
Officials of BAE Systems, the U.S. subsidiary of London-based BAE Systems PLC, said the acquisition supports the company's strategy for unmanned aircraft.
Advanced Ceramics' smaller, less-expensive aircraft systems nicely round out the BAE portfolio, which includes larger, high-end aircraft, Caires said.
By combining those smaller aircraft with BAE's ability to bring them to market, "we really hope to put these systems in the hands of users to a much greater degree."
Advanced Ceramics Research makes three small, unmanned craft for the U.S. Navy, including the Silver Fox, which has been certified as operational by the Naval Air Systems Command, and two pending certification.
"This acquisition will provide BAE Systems with an excellent set of mature, operational products within the small/mini and tactical UAS (unmanned aerial systems) market," Walt Havenstein, president and CEO of BAE Systems, said in a prepared statement.