Emblem is a supplier of niche defense products and services, primarily through its MBM Technology unit in the UK, and Artisan Technologies in the U.S. The company has a core competency in aircraft weapons-carriage and -interfacing systems that will reinforce EDO's position as the global leader in aircraft armament-release systems.

"This acquisition further strengthens a mission-critical, core product line that spans major military-aircraft platforms around the world," said James M. Smith, EDO's chief executive officer. "Emblem broadens our customer base in Europe and opens new potential markets for our complementary product lines.

"We are also pleased with the June 12 announcement that the Raytheon Systems Ltd team, which includes MBM Technology, has been selected to supply the UK's new Precision Guided Bomb. MBM's complete weapon-to-pylon interface portion of the contract is valued at approximately GBP8 million, and will give EDO our first access to high-volume weapons production."

The Emblem Group was formed in 2000 through a management buy-out from Morgan Crucible Plc backed by LDC, the private equity arm of Lloyds TSB. The management team, led by David A. Jones, will remain with the company following the acquisition.

"Joining EDO Corporation will enable us to accelerate our growth, especially in weapons-carriage and -interfacing systems," said Jones. "EDO has the ability to qualify these systems on nearly every major aircraft, and the complementary technologies of our two companies will add further value for our customers. We also see significant opportunities to expand the market for our growing line of military-computer products. We look forward to an exciting future for the combined businesses".