DOW JONES NEWSWIRES

General Dynamics Corp. (GD) announced a deal to acquire sensor and camera maker Axsys Technologies Inc. (AXYS) for $643 million as the defense contractor looks to bulk up its intelligence offerings.

Axsys said in March it was evaluating a possible sale after getting approaches from a number of suitors. That word has helped shares of the company double the past three months. Axsys makes sensors and cameras for customers including the Pentagon and Department of Homeland Security Department for use in applications like aerial and perimeter surveillance.

Axsys holders would get $54 for each share, an 8% premium to Wednesday's closing price. The roller-coaster stock soared from $20 two years ago to $79.69 this past August before losing nearly all those gains by March.

The deal, slated to close in the third quarter, wouldn't impact General Dynamics' 2009 earnings but boost profit thereafter. Axsys has been reporting steady earnings and sales growth in recent years, while information technology-related work is General Dynamics' biggest business.

-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136; kevin.kingsbury@dowjones.com