Terms of the transaction weren't disclosed but Lockheed said Chandler/May, with facilities in California and Alabama, will be part of its Mission Systems and Sensors business.
"This acquisition expands our offerings in support of our customers' increased emphasis on advanced unmanned systems for the C4ISR missions," said Bob Stevens, Lockheed Martin chairman and chief executive officer.
"This acquisition is consistent with our goal to maintain a portfolio of technologically advanced options that will generate value for both our customers and our shareholders."
Lockheed said Chandler/May's command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance systems have been produced and integrated into unmanned aerial systems such as the Desert Hawk.
"At Chandler/May, we have developed a highly talented workforce and created a portfolio of innovative products supporting our defense and intelligence customers," said Chandler/May President Jesse May. "Joining Lockheed Martin is a logical step to expand our current offerings and provides opportunities to reach additional customers."