Aviation powerhouse Boeing Co. has just acquired Argon ST for $775 million in a deal announced Wednesday. Argon, a systems engineering company offering intelligence, surveillance, and reconnaissance services to a wide range of customers, will become a standalone subsidiary of Boeing, falling under a new division of Boeing Network & Space Systems.

Bloomberg Businessweek reports that shareholders of Argon will receive $34.50 a share in the all-cash deal, claiming that the transaction was “net of cash acquired.” Since the acquisition, both companies have seen a bump in their shares on the New York Stock Exchange, with Argon up 41% from yesterday's closing price of $24.43 a share.

Argon's expertise in the defense field will provide exactly the kind of high-tech measures that the Obama administration is calling for right now. The Pentagon is tightening its budget and shifting their funding towards to areas like surveillance and intel rather than traditional weapons, ships and tanks. Argon is capable of manufacturing a wide range of devices meant to aid the military in preventative and electronic warfare, including airborne imaging systems and signal interception. An official from Boeing was quoted as saying that the merger will “accelerate the company's capabilities in sensors, communications technologies and information management.”

Boeing expects to close the Argon ST deal by the end of the third quarter.