BAE Systems to buy Collins, Raytheon business units

BAE Systems, Inc.
By Jonathan Nally
Tuesday, 21 January, 2020

BAE Systems to buy Collins, Raytheon business units

BAE Systems has announced that it has reached definitive agreements for the proposed acquisitions of Collins Aerospace’s military GPS business and Raytheon’s Airborne Tactical Radios (ATR) business.

These two businesses are being sold in connection with obtaining the required antitrust clearances for the pending merger between Raytheon and United Technologies Corporation (UTC).

The proposed acquisitions are structured as asset transactions with associated tax benefits, and remain subject to customary closing adjustments. They’re also contingent upon receipt of the necessary US regulatory approvals.

The asset purchase agreement for the Collins military GPS business calls for cash of US$1.925 billion, with an expected tax benefit of approximately US$365 million.

For Raytheon’s ATR business, the purchase agreement calls for cash of US$275 million, with an expected tax benefit of approximately US$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 defence electronics and communications systems, and further supports our alignment with the modernisation priorities of the US military and its partners.”

Image courtesy Collins Aerospace.

Related News

NT launches draft Drone Industry Strategy, Drone Innovation Challenge

Northern Territory residents are invited to have their say on a new draft strategy designed to...

Telstra and Optus investigated by ACMA for public safety failures

It's been a bad week for Telstra and Optus, who are receiving attention from the ACMA for...

Speedcast provides enhanced connectivity services to NT

Speedcast has expanded its STARS (Satellite To All Remote Sites) program contract, providing...


  • All content Copyright © 2024 Westwick-Farrow Pty Ltd