Rockwell Collins To Buy Simulation Business

It will pay Evans & Sutherland $71.5 million.
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Rockwell Collins

(COL)

, a maker of communication and aviation electronics for commercial and military aircraft, said it will buy the simulation assets of

Evans & Sutherland

(ESCC)

for $71.5 million.

Rockwell will acquire Evans & Sutherland's military and commercial simulation assets and certain liabilities, including simulation facilities in Salt Lake City; Orlando, Fla.; and the U.K.

As a part of the deal, which is expected to close in the second quarter of 2006, Rockwell Collins will have exclusive rights to the Evans & Sutherland laser projector for simulation markets.

About 200 Evans and Sutherland employees will join Rockwell Collins.

"Simulation and training offers a significant growth opportunity for our company," said Rockwell. "The acquisition of these valuable assets from Evans & Sutherland will further enhance our simulation and training capabilities and provide more robust solutions for our customers."

Evans & Sutherland intends to use the proceeds from the transaction to retire its outstanding debt, to reduce its funding obligations under its pension and retirement plans, and for working capital.

The shares of Rockwell Collins were trading Wednesday at $50.52, up 60 cents, or 1.2%.

This story was created through a joint venture between TheStreet.com and IRIS.