General Dynamics Unit Buying Axsys Technologies

FAIRFAX, Va. (AP) — General Dynamics Advanced Information Systems, a unit of General Dynamics, said Thursday it will acquire Axsys Technologies Inc. for $643 million.

General Dynamics will pay $54 per share to acquire Axsys, a designer and manufacturer of optical and infrared sensors and systems and stabilized cameras. The sale price represents an 8 percent premium over Axsys' Wednesday closing price of $50.

The deal will increase General Dynamics' earnings beginning in 2010.

General Dynamics Advanced Information Systems designs, manufactures and operates mission systems for defense, space, intelligence, surveillance, reconnaissance, homeland security and homeland defense customers.

The acquisition, which has already been approved by both companies' boards of directors, is expected to close during the third quarter.

General Dynamics shares fell 23 cents, or 0.39 percent, to $58.36 in morning trading while Axsys shares gained $2.97, or 5.9 percent, to $52.97.