BAE Systems, Inc. announced today it has reached definitive agreements for the proposed acquisitions of Collins Aerospace's military Global Positioning System (GPS) business and Raytheon's Airborne Tactical Radios (ATR) business.
These two high-performing businesses are being sold in connection with obtaining the required antitrust clearances for the previously announced pending merger between Raytheon and United Technologies Corporation (UTC).
The proposed acquisitions are structured as asset transactions with associated tax benefits, and they remain subject to customary closing adjustments. The asset purchase agreement for the Collins military GPS business calls for cash of $1.925 billion, with an expected tax benefit of approximately $365 million. For Raytheon's ATR business, the purchase agreement calls for cash of $275 million, with an expected tax benefit of approximately $50 million.
"As militaries around the world increasingly operate in contested environments, the industry-leading, battle-tested products of these two businesses will complement and extend our existing portfolio of solutions we offer our customers," said Jerry DeMuro, CEO of BAE Systems, Inc. "This unique opportunity to acquire critical radio and GPS capabilities strengthens our position as a leading provider of defense electronics and communications systems, and further supports our alignment with the modernization priorities of the U.S. military and its partners."
These proposed acquisitions are subject to the successful closure of the Raytheon-UTC transaction, as well as the satisfaction of other customary closing conditions, including receipt of the required U.S. regulatory approvals. Upon closure, both business lines would be integrated into the company's Electronic Systems sector.
"These are strong businesses with talented employees who share our focus on quality and technology innovation," said Tom Arseneault, President and COO of BAE Systems, Inc. "We are confident of a smooth transition that will accelerate our future together and look forwa
| Contact details from our directory: | |
| Raytheon Intelligence & Space (RIS) | Infrared Target Designators, Surveillance/Air Defense Radar, GPS, Airborne Reconnaissance Infrared, Reconnaissance Radar, IFF Interrogators, Radio Communications Equipment, Weapons Countermeasures, Laser Targeting Systems |
| BAE Systems, Inc. | Weapons Countermeasures, Electronic Components, Electronic Warfare Systems |
| Collins Aerospace, Avionics Division | Head-Up Displays, Radio Communications Equipment, Moving Maps, Enhanced Vision Systems (EVS), LCD Displays, Engine Indicator Instruments, Cabin Management Systems, Automatic Flight Control Systems, Inflight Entertainment, Automatic Direction Finders, Cabin Address Systems, Autopilots, Radar/Radio Altimeters, Distance Measuring Equipment, VOR (Omnirange) Receivers, Avionics Management Systems, Air-to-Ground Data Links, Multi-Mode Receivers (MMR), Engine Control Quadrants, Control Panels, Aircraft & Helicopter Controllers, Collision Avoidance Systems/TCAS, Helmet-Mounted Displays (HMD), Weather Mapping Radar, Inertial Components & Systems, Attitude and Heading Reference Systems, Navigation Antennas, Transceivers, Flight Recorders, Cockpit Printers, Flight Directors, Flight Management Systems, Electronic Flight Instrument Systems, Air Data Computers, Onboard Computers, UAV Control Software, GPS, Simulation Systems, Surveillance/Air Defense Radar, Engine Controls, Terrain Awareness and Warning Systems, Horizontal Situation Indicator, Instrument Landing Systems, Command, Control & Intelligence Systems, Airborne Communication Systems, Cockpit Video Displays, Onboard Intercom Systems |
| BAE Systems Electronics & Integrated Systems | Electronic Warfare Systems, GPS, Weapons Countermeasures, Radar Reconnaissance Equipment, Engine Controls |
| Related directory sectors: |
| Navigation Aids (Airborne) |
| Communications (Airborne) |
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