Hughes Buys Subsidiary of Lockheed Corp.

In a move to expand its commercial aerospace business, Hughes Aircraft Co. has acquired a Lockheed Corp. subsidiary in Pasadena that provides in-flight audio-video equipment and programming services to the commercial airline industry.

Under terms of the deal, which was completed this week, Hughes will purchase all of Avicom International’s stock from Lockheed for an undisclosed sum.

Avicom, a unit of Lockheed Air Terminal of Burbank, will become a subsidiary of Hughes’ Microelectronic Systems Division in Rancho Santa Margarita. Hughes officials said Avicom will remain in Pasadena and will retain its current management.

The Hughes microelectronics unit employs about 750 people. Avicom, which Lockheed acquired in 1985, has 250 employees.

Hughes’ purchase of Avicom comes as many aerospace and defense companies are seeking opportunities in commercial fields in order to reduce their dependence on ever-stingier Pentagon budgets.

The Hughes division also supplies audio-video equipment and services to the commercial airline industry. Avicom’s products include in-flight control systems for audio and video entertainment in the passenger cabin.