The Boeing Co.’s sprawling Defense, Space and Security division in Huntington Beach will not benefit from the unit’s new $805 million contract from the Department of Defense to manufacture the U.S. navy’s first carrier-based drone.
Under the deal, the Chicago-based defense giant will produce four MQ-25 aerial refuelers, which will be engineered and manufactured at its St. Louis operation.
“The contract award for MQ-25 doesn’t bring any additional work to OC,” spokesperson for Boeing Deborah VanNierop said via email.
Its Huntington Beach operation has handled some unmanned vehicle work in the past, including the 51-foot underwater vessel, Echo Voyage, which was launched two years ago, and its predecessors, the 32-foot Echo Seeker and the 18-foot Echo Ranger.
The Business Journal in April reported that Boeing put one of its largest local properties on the market (see story, page 3).
The 285,000-square-foot office near the intersection of Bolsa Chica Street and Bolsa Avenue sits on the 30-acre property for its Defense, Space and Security division.
The site is big enough for more than 400,000 square feet of warehouse and distribution space, though any development plans would require city approvals.
A project that size would be the largest industrial development in West Orange County in over a decade.
Boeing (NYSE: BA) has been providing carrier aircraft to the U.S. Navy for more than 90 years.
An Esports Goal
OC’s only professional soccer team is jumping on the esports bandwagon.
Orange County Soccer Club, which moved into a new stadium at Orange County Great Park in Irvine last year, will create its own professional video gaming team to compete in the Virtual Pro Gaming league, a first in U.S. professional soccer and the United Soccer League, which sits behind Major League Soccer in the sport’s pecking order statewide.
The VPG features more than 100,000 players and 2,200 11-member teams who compete in Electronic Arts’ FIFA franchise.
FIFA has drawn more than 20 million players this season, including OC Soccer Club owner and President James Keston.
Keston bought the team in 2016, reportedly for more than $5 million, when it was called the Orange County Blues.
OC Soccer Club came in 10th in USL’s Western Division last season, missing out on the playoffs by two spots. The club promoted former assistant coach Braeden Cloutier to the head coaching spot late last year.
OC is one of the hottest markets for esports in the country, buoyed by Irvine-based Blizzard Entertainment Inc. and Kingston Technology Co.
Blizzard established an esports league this year based on its smash hit “Overwatch,” in which owners ponied up a reported $20 million per team. Kingston, OC’s biggest consumer electronics maker, sponsors over 30 gaming organizations, 100 professional teams and more than 550 professional players under its HyperX brand.
The Business Journal in July broke the story that Orange County entrepreneur Paul Ward launched a $20 million venture capital fund dedicated solely to esports.
He co-founded Santa Ana-based Esports Arena LLC in 2015 with middle-school friend Tyler Endres. The 15,000-square-foot arena at 120 W. Fifth St. in downtown Santa Ana was a novel concept and the first of its kind in the U.S., hosting esports and entertainment events, including daily video game competitions.
The concept has expanded to Oakland and Las Vegas.
Several local software makers are also closely tied to the industry, developing infrastructure, platforms and databases for players, leagues and fans.
Quick Deal
One Stop Systems Inc. in Escondido really wanted Concept Development Inc. so it completed the acquisition in 10 days.
One Stop announced on Aug. 28 that it would acquire the Irvine-based company for $4.9 million in stock and $1 million in cash.
By Sept. 6, One Stop said it had finalized its buy of CDI, which designs and manufactures in-flight entertainment systems for commercial aircraft.
The buy is projected to add $4 million to $6 million in annual revenue, according to One Stop, which posted sales of $27.5 million last year, up 46% from 2016.
The company will acquire Concept’s 13 employees in the deal. Jim Reardon, who held the top post at CDI, now serves as president of the wholly-owned subsidiary, which was renamed Concept Design LLC.
One Stop said Concept Design is profitable, with a 38% to 42% gross margin.
OC has been a longtime hub for in-flight entertainment, home to market share leaders Panasonic Avionics Corp. in Lake Forest, which has nearly 2,300 local employees, and Thales USA Inc. in Irvine, which employs nearly 1,500 locally, according to Business Journal data.
One Stop went public in February, raising $19 million with its shares priced at $5, below its price range of $6 to $8. Newport Beach-based Roth Capital Partners LLC was sole book-running manager for One Stop, which makes systems for high performance computing systems for defense and telecommunication customers.
Since the IPO, shares of One Stop have fallen to about $3.60 and $43 million market cap.
