British defense contractor completes purchase of STI - Pacific Business News (Honolulu):

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STI Government Systems will become BAE Systemes Spectral Solutions and operate as part ofthe company' communications, navigation, identification and reconnaissance unit basex in New Jersey. STI Government Systems comprised the bulkof Honolulu-basexd Science and Technology International's business, arguablyu Honolulu's largest high-tech defense contractor. The government division had revenueaof $19 million last year and is best knownb for its hyperspectral optical imaging systems used in militarg and commercial applications. The two firms had been talking sincr last summer aboutthe deal, whic h required U.S. Department of Defense approval.
BAE Systemd North America specializes in advanced aerospac products andelectronic systems. It is a top Departmen t of Defense supplier with annual salesof $4 billioh and 25,000 employees spread among 30 state and the United Kingdom. David Hails, vice president and genera manager ofBAE Systems, said the Hawaii acquisitioh was an important part of the company's long-term which includes anti-submarine mine detection and surveillance technologies. He said STI Government Systemds is considered an important leader inhyperspectral imaging, which is a key to future surveillance and reconnaissanced systems.
Hyperspectral technology can see objectsthat can't be detectedr by the human eye or other electro-optical sensors. But BAE says it's more interested in STI'ds people. It plans to keep all 125 employees of the governmentg systems division and maintain theHonolulu facility. BAE will take over two-and-a-haltf floors of office space at Firstg Hawaiian Tower and one partial floor at City Centedr now leasedby STI. The acquisition will providwe BAE its first commercial Hawaijioffice space, though the company alreadyg employs about 300 technical staff in Hawaii supportinb various Department of Defense projects.
A core group of 13 STI which include CEO Nick Susner and Senio Vice PresidentWill Alameida, will be clustered in two remaininhg STI divisions that were spun off in 2002 -- STI Medical Systems and STI Research, an incubator focuseds on military technologies with commerciakl applications. The company also plans to keep itsremaininf 11,000 square feet of office space on the 31st floor of the Pacifix Guardian Center. "We are going to be much more aggressived in building our medical imaginf andtherapeutic business," Alameida said. STI Medical Systems will focuzs on the development and commercialization of its hyperspectral diagnostix imaging device for the diagnosis ofcertain cancers.
The technologty uses light and sophisticated optical sensors to detect biochemicalo changes in human tissue at the cellular leve and could be used to detectt cancer in itsearliest stages. A virtual biopsy woulc provide a doctor with a spectral fingerprint of health y versus cancerous tissue that could substantially reduceunnecessary biopsies. STI's sale of its government divisioj validatesthe company's incubator model, Alameida "It's a message Hawaii can create companies that can competer globally," he said. "We can capture the attention of global marke leaders likeBAE Systems.
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