BAE Systems Announces Proposed Acquisition of Collins Aerospace’s Military Global Positioning System Bus. & Raytheon’s Ai...
January 20 2020 - 1:12AM
Business Wire
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 forward to welcoming these new employees to the
BAE Systems team once the transactions are approved.”
Collins’ Military GPS Business
Based in Cedar Rapids, Iowa, Collins’ military GPS business is a
longstanding provider of mission critical military GPS receiver
solutions and has been a pioneer in military GPS receiver markets
for over 40 years. Today, it designs and produces advanced,
hardened and secure GPS products to include M-Code, anti-jamming,
and anti-spoofing technologies. The business has an installed base
of over 1.5 million devices on approximately 280 platform types
around the world, including ground, airborne, and weapon
systems.
Given the requirement for ubiquitous, secure geo-positioning in
contested battlefields, this technology offering will continue to
be critical to the U.S. military and partners worldwide. For
example, the business is currently developing the next generation
of M-Code GPS technologies for the U.S. military, which will
advance our collective position to address the priority growth area
of precision guided munitions.
Raytheon’s Airborne Tactical Radios Business
Raytheon’s ATR business is a leading provider of airborne
tactical radio solutions. Based in Fort Wayne, Indiana, and Largo,
Florida, the ATR business designs, manufactures, and supplies a
wide array of mission-critical communication systems to the U.S.
Department of Defense, allied governments, and large defense
aircraft manufacturers. The business has leveraged its innovative
technologies to develop secure communications solutions that are
installed on a broad range of military airborne platforms.
Coupled with the Electronic Systems sector of BAE Systems, Inc.,
Raytheon’s ATR business will enhance our positions in airborne
communications with broad spectrum, multi-band, multi-channel
radios including battle proven, robust, anti-jam, and encryption
capabilities. The ATR business brings both complementary waveform
expertise and a long trusted partnership with the U.S. Army.
These businesses will be excellent strategic fits with the
strong BAE Systems Electronic Systems sector, and our combined
capabilities will benefit our customers and all of our
stakeholders.
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version on businesswire.com: https://www.businesswire.com/news/home/20200119005048/en/
For more information, please contact: Caitlin Hayden
Office: 703-894-3740 Mobile: 703-795-1929
caitlin.hayden@baesystems.com www.baesystems.com/US
@BAESystemsInc
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