Innovative Aerosystems (Nasdaq: ISSC), a U.S.-based company specializing in the engineering, manufacturing, and supply of advanced avionic solutions, announced today that it has acquired from Honeywell International Inc. (“Honeywell”) (NASDAQ: HON) an exclusive perpetual license covering unique and related parts, intellectual property, customer contracts, OEM and aftermarket production and repair, and program assets associated with Honeywell power generator systems supporting commercial and defense aircraft.
Under the terms of the agreement, ISSC acquired key operational assets including specialized tooling, testing equipment, and technical data necessary to support Power Generators and Generator Control Units installed on Boeing 767 passenger and freighter aircraft, the KC-46 aerial refueling tanker, and the F-15 fighter platform.
This strategic expansion strengthens Innovative Aerosystems’ ability to provide long-term sustainment, engineering support, and supply continuity for operators of mission-critical electrical power generation systems worldwide.
MANAGEMENT COMMENTARY
“This transaction expands our capabilities in aircraft electrical power generation and reinforces our strategy to be a trusted lifecycle partner for both commercial transport and defense operators,” said Shahram Askarpour, Chief Executive Officer of Innovative Aerosystems. “These systems play a critical role in delivering stable electrical power to avionics, flight controls, communications, and other essential onboard systems. Integrating this portfolio into our organization allows us to enhance support responsiveness, preserve technical continuity, and pursue future modernization opportunities across these important platforms,” concluded Askarpour.
COMPELLING TRANSACTION RATIONALE
- Strengthens electrical power system sustainment capabilities. Power Generators and Generator Control Units are responsible for generating, conditioning, and managing onboard electrical power throughout all phases of flight. These systems help maintain stable electrical supply, balance system loads, and protect sensitive avionics and aircraft systems from power disturbances.
- Expands customer and platform reach. This transaction broadens Innovative Aerosystems’ support footprint across commercial transport and defense fleets, enhancing its ability to provide long-term sustainment, engineering support, and supply continuity for global operators, maintainers, and OEM partners.
- Commercial and operational synergy potential. Innovative Aerosystems plans to maintain continuity of support for current operators while leveraging its vertically integrated U.S. engineering, manufacturing, and certification capabilities to improve product supportability, support repair and spares responsiveness, and explore future modernization initiatives.
- Furthers integrated avionics and power systems strategy. By adding these capabilities to its portfolio, Innovative Aerosystems enhances its ability to support operators with integrated solutions spanning flight deck modernization, flight controls, navigation technologies, autopilots, mission computing, and electrical power system sustainment.
