Rockwell Collins’ agreement to acquire Evan & Sutherland’s (E&S) visual systems business for $71.5 million in cash will boost the US avionics giant’s move into the simulation and training market, begun with its 2003 acquisition of simulator manufacturer NLX for $125 million.
“The training industry is demanding better fidelity, and the visual environment is a key component. If we wanted to be a major player, we needed that key component,” says Tony Syme, vice-president Rockwell Collins Simulation & Training Solutions.
The acquisition will enable Collins to compete head on with market leader CAE in the commercial and military markets for both simulators and visual systems, often acquired as a package. Syme says Collins will continue to supply visual systems for simulators built by CAE and Thales.
Syme says he approached E&S a year ago “with the potential of putting the two companies together”. E&S agreed to sell its visuals business, says president and chief executive Jim Oyler, as it believes markets are consolidating, favouring larger companies. “With fewer contracts available for competition, the revenue volatility is difficult for a small company to manage,” he says.
Source: Flight International
