BAE’s US Arm to Buy Two Businesses From Raytheon, UTC’s Collins Aerospace; Jerry DeMuro Quoted

Jeff Brody
Jerry DeMuro

BAE Systems’ U.S. subsidiary has agreed to acquire two businesses that are being divested in order for United Technologies Corp. (NYSE: UTX) and Raytheon (NYSE: RTN) to secure the required antitrust approval for their pending merger.

BAE Systems Inc. said Monday it will purchase the military GPS business of UTC’s Collins Aerospace for $1.925B in cash and Raytheon’s airborne tactical radios business for $275M in cash and will integrate the two units into its electronic systems sector upon the deal’s closure.

The asset purchase agreements include associated tax benefits of approximately $365M for the GPS business and about $50M for the ATR business, subject to the completion of the UTC-Raytheon deal and other customary closing conditions.

Jerry DeMuro, CEO of BAE Systems Inc. and a three-time Wash100 award winner, said the products of the two businesses will extend and complement BAE’s existing portfolio, build up its capabilities as a defense electronics and communications systems provider and further aligns the company with the modernization priorities of the U.S. military and its partners.

Collins Aerospace’s military GPS business is based in Cedar Rapids, Iowa, and provides M-code, anti-spoofing systems, anti-jamming technologies and other GPS receiver platforms.

Raytheon’s Florida-based ATR business produces and supplies mission-critical communications platforms to the Pentagon, allied governments and defense aircraft makers.  

UTC and Raytheon announced their all-stock merger in June of last year and expect the transaction to close in the first half of 2020.

Check Also

Leonardo DRS

Leonardo DRS Secures $250M Army Tactical Terminal Replacement Contract

Leonardo DRS has been awarded a five-year, $250M contract to replace the U.S. Army's satellite communications terminals designed for tactical users. The contractor will help the Army replace the terminals that are set for decommissioning in fiscal year 2025, the Department of Defense said Wednesday.

Vicki Schmanske President Leidos Intell Group

Leidos Books Potential $960M CBP Software Dev’t BPA; Vicki Schmanske Quoted

Leidos (NYSE: LDOS) has received a potential five-year, $960M blanket purchase agreement to develop software to support the Customs and Border Protection’s traveler vetting procedures.