Summary
It is evident that EADS needs to acquire USA DOD industrial strength in the USA independent of the result of their AF tanker program proposed aircraft competition with Boeing. BAE has gained a strong role in the USA as one of the top DOD electroincs and system suppliers as has Italy's Finmecanica made a major penetration with the DRS Technologies acquisition. I believe UAV systems and avionics represent a growing market for them to consider an acquistion like Axsys, FLIR or other UAV avionic players.
Analysis
The decreased dollar value has made USA DOD industrial acquisitions by European companies attractive as well as the large USA market access gained. The defense industry has more resilience in the USA than overseas and makes an attractive market, in spite of it's expected shrinkage, in future unclear industrial times. DOD companies have experience a decrease in stock valuation and shrinking opportunities for borrowing to support growth. USA larger industrial companies are now focusing of non-DOD possible business areas to compensate for a decreased procurement budget expected by the new administration. EADS has a perfect opportunity to collect smaller, key DOD suppliers with a minimum of competition.
