BAE Systems has announced that it has entered into an agreement to acquire Collins Aerospace’s Military Global Positioning System business and Raytheon’s Airborne Tactical Radios business.
According to a statement from BAE Systems:
“BAE Systems announces that it has entered into a definitive Asset Purchase Agreement to acquire Collins Aerospace’s Military Global Positioning System business for $1.925bn in cash, subject to customary closing adjustments. As an asset purchase there is an expected tax benefit of c.$365m. The Company has also entered into a definitive Asset Purchase Agreement to acquire Raytheon’s Airborne Tactical Radios business for $275m in cash, subject to customary closing adjustments. As an asset purchase there is an expected tax benefit of c.$50m.
Completion of both acquisitions are subject to successful closure of the Raytheon-United Technologies Corporation merger, as well as customary regulatory approvals and conditions. These two proposed acquisitions represent a unique opportunity to purchase high quality technology based businesses with market leading capabilities and long histories of pioneering innovation in their fields. These assets have come to market as part of the regulatory process relating to the merger of Raytheon and UTC. Both businesses are highly complementary to our US-based Electronic Systems business and on completion they would be integrated into our Electronic Systems division.”
Commenting on today’s announcement, Charles Woodburn, Chief Executive of BAE Systems said in a release:
“These proposed acquisitions present a unique opportunity to add high quality, technology focused businesses to our Electronics Systems sector. It’s rare that two businesses of this quality, with such strong growth prospects and close fit to our portfolio, become available. The strategic and financial rationale is strong and these proposed acquisitions, which are focused on areas of highest priority defence spending, will further enhance the Group’s opportunity for continued growth in Electronic Systems. We look forward to welcoming the employees of the two businesses to the Company, as we work together to help drive our business forward successfully.”