Innovative Aerosystems (NASDAQ:ISSC) has reached an agreement with Honeywell International (NASDAQ:HON) to acquire key assets and intellectual property for select legacy avionics lines, a move that deepens the company’s reach into the global general aviation market.
The Exton, Pa.-based company, formerly known as Innovative Solutions and Support, entered into an asset purchase and perpetual license agreement for products supporting the global Part 23 aircraft fleet.
The deal includes contracts, intellectual property, and critical operational assets such as specialized tooling and test equipment required for the production and repair of legacy systems.
The acquisition covers a broad portfolio of general aviation technologies, including navigation and communication radios, autopilot systems, multifunction displays (MFDs), and transponders.
By integrating these product lines, Innovative Aerosystems aims to provide long-term sustainment and supply continuity for a vast fleet of aircraft that still rely on these core systems for safe operation and situational awareness.
The deal comes at a pivotal time for both companies.
Honeywell is currently preparing to spin off its aerospace business as a standalone entity in the third quarter of 2026, while Innovative Aerosystems has been aggressively pursuing a strategy of operational leverage and inorganic growth.
In its most recent earnings call, Innovative Aerosystems’ management highlighted a multi-year revenue target of $250 million, supported by its shift toward integrating artificial intelligence and autonomous flight solutions through platforms like its next-generation UMS2.
Financial terms of the transaction were not disclosed.