General Dynamics unit merges - East Valley Tribune: East Valley Local News

General Dynamics unit merges

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Posted: Saturday, November 15, 2003 3:58 am | Updated: 1:38 pm, Thu Oct 6, 2011.

General Dynamics’ Scottsdale-based Decision Systems division is being merged with another business unit to create a division that will be doubled in size, the company said Friday.

The headquarters of the division, to be called General Dynamics C4 Systems, will be in Scottsdale, and Mark Fried, president of Decision Systems, will become the president and chief executive of the new division.

Decision Systems, which makes high-tech, secure communications gear for military, space and law enforcement customers, will be joined with the old General Dynamics C4 Systems of Taunton, Mass., the company said. C4 Systems makes similar products.

The head of the old C4 Systems unit, Gerard J. DeMuro, is being promoted to executive vice president of the General Dynamics Information Systems and Technology group, and Fried will report to him.

Fried had been president of General Dynamics Decision Systems since General Dynamics acquired that unit from Motorola Corp. in September 2001.

The two divisions are about equal in size, and both employ more than 3,200 people. The new unit will have about 6,500 employees, and no layoffs are anticipated as a result of the reorganization.

"Combining these two units will make us a stronger competitor in the marketplace and will enable us to serve our customers more effectively," said DeMuro.

The two businesses have complementary products, technologies and customers, and the merger will allow military customers to shop for a greater range of communications products in one stop, Fried said.

Although the products are complementary, there is not a lot of overlap in the product lines or jobs, and the need to relocate employees will be minimal, he said.

"Both companies have significant hiring going on," he said. "We are both growing."

The Scottsdale complex at 8201 E. McDowell Road has about 3,000 employees, and there are another 150 open positions the company is attempting to fill, he said.

The company is the largest for-profit employer in Scottsdale.

A transition team has been formed to look for operating synergies and to consider a new name for the combined enterprise, Fried said.

General Dynamics, a defense contractor with headquarters in Falls Church, Va., employs approximately 66,900 people worldwide and anticipates 2003 revenue of $16.1 billion.

Revenue for the Decision Systems and C4 Systems units was not released.

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