OSI Systems to buy cargo x-ray maker
OSI Systems said it has agreed to acquire Advanced Research and Applications Corp. (ARACOR), a manufacturer of mobile X-ray imaging systems designed to scan full-size cargo containers and their contents for drugs, weapons, explosive devices and other contraband.
ARACOR has a five-year contract potentially worth about $40 million to supply its Eagle cargo inspection system to the U.S. Bureau of Customs and Border Protection. Customs has ordered two units, valued at about $12.5 million, so far. The Port Authority of Jamaica also ordered an Eagle system for delivery next year.
OSI Systems, Hawthorne, Calif., sells X-ray and gamma ray detection systems to airports and border authorities through its Rapiscan and Ancore divisions. The acquisition further consolidates a small field of U.S.-based X-ray inspection manufacturers that includes L-3, American Science and Engineering and Smith Industries.
