Wednesday, February 8, 2006

Evans & Sutherland Sells Simulation Business to Rockwell Collins

Salt Lake City, utah-based Evans & Sutherland is reporting today that it has entered into an agreement to sell its simulation business to Rockwell Collins, a provider of avionics and communications systems for the military. The deal is worth $71.5M in cash, and calls for over 200 Evans and Sutherland employees to join Rockwell Collins, and includes its facilities in Salt Lake City, Orlando, and the United Kingdom. The move is fairly significant, as Evans & Sutherland was founded on the simulation business, providing flight simulation systems to commercial and military customers. E&S said that it is acquiring Spitz, Inc., a supplier of planetarium systems and will now focus on the digital theater and laser projector business. E&S said that the proceeds of the sale will be used to retire convertible subordinated debentures and reduce pension and retirement obligations. E&S is acquiring Spitz from Transnational Industries for $3.4M in cash and stock.