United Technologies Corp. (NYSE: UTX) is exploring an acquisition of Cedar Rapids, Iowa-based avionics contractor Rockwell Collins (NYSE: COL) as the global industrial conglomerate looks to further expand its aerospace business, Bloomberg reported Saturday.
Sources familiar with the matter told Bloomberg it is yet unclear whether the two firms are in discussions over the deal.
The report said a potential transaction would allow UTC to integrate Rockwell Collins’ aircraft interiors and avionics equipment with its portfolio of aircraft components.
UTC CEO Greg Hayes announced in May that the Farmington, Connecticut-based conglomerate was on the prowl for acquisition opportunities in the $250 million to $1 billion range.
UTC has a market cap of $97 billion and generates approximately 50 percent of its sales from Pratt & Whitney and other aviation divisions, the report added.