From Deseret News archives:

Evans & Sutherland sells division

Rockwell Collins to take over simulation business

Published: Wednesday, Feb. 8, 2006 11:09 p.m. MST
 |  E-MAIL | PRINT | FONT + - 
Citing post-9/11 market changes, Evans & Sutherland Computer Corp. said Wednesday it has agreed to sell its flagship computer simulation business to Iowa-based Rockwell Collins Inc. in a deal worth $71.5 million.

Following the sale, the Salt Lake-based company will focus its energies on its digital theater and laser projector businesses, saying it has industry dominance on one end and room to grow on the other.

The transaction — a cash purchase, with $10 million of the $71.5 million to be put into escrow to pay for closing costs and other expenses — is expected to close during the second quarter of 2006. It includes Evans & Sutherland's military and commercial simulation assets (and certain liabilities), including simulation facilities in Salt Lake City, Orlando and the United Kingdom.

Evans & Sutherland will use the money to pay debt, fund its pension and retirement plans and for working capital, the company said. It also will consider using a portion of the proceeds for a possible share buyback or special dividend.

Rockwell Collins, which is based in Cedar Rapids, Iowa, specializes in communication and aviation electronics — navigation, surveillance, display, flight control, in-flight entertainment, information management, maintenance and training. The company said it will use the acquisition to beef up its simulation division.

Story continues below
About two-thirds of Evans & Sutherland's 300 workers — including about 100 in Utah — will join Rockwell Collins, Evans & Sutherland President James R. Oyler said Wednesday. Evans & Sutherland will keep the remaining 100 employees. No job losses are expected to result from the transaction, Oyler said.

"There are no reductions out of this," Oyler said. "Everybody has a job. They either go to Rockwell Collins, or they stay with us. Nobody is left out."

Evans & Sutherland will retain ownership of its planetarium and other laser projector market offerings and will keep its headquarters in Salt Lake City, Oyler said.

"The reason for the transaction is that the market, and the industry that we operate in, has changed fundamentally over the last few years," Oyler said. "It had already started changing, but it accelerated after 9/11 with the changes in the airline industry.

"While we have recovered from that, the industry is now dominated by a small number of large companies — an environment that favors the larger, more diversified companies. The effect of a change in revenue, for example, doesn't affect them the way that it does us."

Comments

You can be the first to comment on this story.

Image

Ken Carlson, left, and Marty Sisam of Evans \& Sutherland Computer Corp. look at a digital theater product in the company's Salt Lake office in October 2003. The company is shifting its focus to concentrate on digital theater and laser projection.

previousnext

Latest comments

Many more babies sleep with parents than not globally. On different styled...

TCU versus BSU unpopular

wow, Jan has a lot of questions...

I don't know about you guys but if it comes down to an animal surviving and...

Yet again, we learn BCS is a big joke

My thoughts exactly! What a joke!

Girls basketball rankings

rich won 50 35 rich was up 42 14 at the start of the 4th. the third...

The NBA rigged? NOOOOOOOOO, say it isn't so.

Utahns in giving mood

I'm glad so many people are willing to give even in hard times.

@Red | 10:45 a.m. Dec. 7, 2009 Excellent.

Maybe you should take an accounting class or even a reading class. The State...

BYU surprised me with how well they finished the season at 10-2. After their...

Advertisements