Rockwell Collins (NYSE: COL) has finalized a move to beef up its portfolio of information management solutions as it completed its acquisition of ARINC for $1.4 billion.
Cedar Rapids, Ia.-based Rockwell Collins announced the closure Monday, several months after Reuters reported Carlyle Group was preparing the sale of Annapolis, Md.-based ARINC.
Booz Allen Hamilton had previously purchased ARINC’s defense systems engineering and support business in December 2012 in a move to grow Booz’s capabilities in areas such as C4ISR and add contracts with the U.S. Navy and Air Force.
Kelly Ortberg, Rockwell Collins president and CEO, said his firm is looking to grow its presence in markets adjacent to its current business lines including airport information systems, transportation and security.
“The acquisition represents an exciting new growth platform for Rockwell Collins and shifts the balance of the company toward the expanding commercial aviation sector, ” Ortberg said.
Ortberg added that the move represents a “major leap forward” in Rockwell Collins’ efforts to provide a “richer set of seamless information management solutions that encompass the aircraft and ground-based systems.”
Rockwell Collins anticipates the deal to be accretitive to its earnings per share after costs of integration activities are factored in over the coming months.
The company has further made moves to divest itself of ARINC’s industry standards organization and aerospace systems engineering and support businesses as part of the transaction.
