Rockwell Collins to Acquire ARINC for $1.4B; Kelly Ortberg, John Belcher Comment

CH53KChopperRockwell Collins (NYSE: COL) has agreed buy ARINC for $1.39 billion in a move aimed at expanding Rockwell Collins’ offerings in the aviation industry.

The potential buy is subject to regulatory approvals and intends to combine Rockwell Collins’ avionics and cabin technologies with the networks and services of the Annapolis, Md.-based Carlyle Group portfolio company, Rockwell Collins said Sunday.

Rockwell Collins says the acquisition will change its business balance to nearly 54 percent commercial and 46 percent government.

Kelly Ortberg, Rockwell Collins CEO and president, said the deal aims to further the company’s strategy of building information management services in an effort to seek fresh opportunities.

ARINC provides aviation services for pilots, operators, maintenance, passengers, controllers, regulators, security and airport operations.

The company also offers communications and information processing technologies and services to rail, industrial security and public safety customers.

John Belcher, ARINC chairman and CEO, said Rockwell Collins will integrate its on-board information management products with ARINC’s communications services with the goal of developing new offerings.

Citi served as Rockwell Collins’ financial advisor for the transaction.

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