BAE Systems said on Monday it plans to acquire Collins Aerospace’s military Global Positioning System (GPS) business and Raytheon’s Airborne Tactical Radios (ATR) business as Raytheon itself is going through a merger with United Technologies Corporation.
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"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," BAE Systems CEO Jerry DeMuro said in a statement. "This unique opportunity to acquire critical radio and GPS capabilities strengthens our position as a leading provider of defense electronics and communications systems, and further supports our alignment with the modernization priorities of the U.S. military and its partners."
|BAESY||BAE SYSTEMS PLC||30.98||-1.18||-3.67%|
|UTX||UNITED TECHNOLOGIES CORPORATION||127.81||-4.38||-3.31%|
BAE Systems' purchase agreements include $1.925 billion in cash for the Collins deal and $275 million for the Raytheon ATR deal.
BAE Systems' acquisition of the two businesses will need to pass certain government regulatory hurdles, and it will also depend on "successful closure" of the Raytheon-UTC deal, which the companies announced in June. Shareholders approved the merger, which will create the second-largest aerospace company, in October.
The New York Stock Exchanged is closed Monday in observance of Martin Luther King Jr. Day. Shares of BAE Systems, Raytheon, UTC and Collins have been on the up-and-up for the past year, however.