Codem acquired for $29 million

announced today that it has acquired

in a stock purchase transaction valued at approximately $29 million in cash.

Established in 1972, Codem Systems is a privately-held business located in Merrimack, New Hampshire. It is a provider of signals intelligence (SIGINT) systems, network interface modules, and high-performance antenna control systems. The company's expertise is said to be concentrated in systems engineering software and hardware development as well as end-user training.

"Codem enhances DRS's position in intelligence and surveillance systems, while supporting greater access to emerging market opportunities, such as those related to homeland defence," said Mark S. Newman, chairman, president and chief executive officer of DRS Technologies.

Codem's signal intelligence systems intercept, monitor and geographically locate radio and wireless signals. Its products, such as high-frequency (HF) SIGINT systems compliment DRS's core intelligence systems business and are employed in communications intelligence (COMINT), electronic warfare (EW) and radio spectrum management.

Like DRS's intelligence and tactical systems, these product lines support Army ground force digital communications and direct broadcast satellite applications for ships and aircraft.

In its first twelve months of operation under DRS ownership, Codem is expected to be accretive to earnings and generate approximately $25 million in annual revenues.