BAE Systems is to purchase Boeing's Commercial Electronics business, which makes flight controls and other equipment for Boeing airliners. The Irving, Texas-based unit, with 800 employees and $170 million in sales last year, will become part of BAE Systems North America's Platform Solutions sector, which produces flight and engine controls for commercial aircraft. BAE has signed an eight-year single-source supply agreement to continue providing equipment to Boeing, but its strategy is to grow the unit beyond its niche as a captive supplier to Boeing. Platform Solutions president James Scanlon says the Irving unit will have a complete development and production capability. "It is partially in place today. We will add to the capability that exists." Scanlon says Platform Solutions already has a good balance between civil and military business, with "30% [of sales] commercial today".

Source: Flight International