×
×
homepage logo
LOGIN
SUBSCRIBE

BAE systems is growing

By Staff | Jan 23, 2020

NASHUA – Officials with BAE Systems Inc., a global firm with operations in Nashua, said they have reached definitive agreements for the proposed acquisitions of Collins Aerospace’s military Global Positioning System (GPS) business and Raytheon’s Airborne Tactical Radios (ATR) business.

These two businesses are being sold in connection with obtaining the required antitrust clearances for the previously announced pending merger of Raytheon and United Technologies Corp.

The proposed acquisitions are structured as asset transactions with associated tax benefits, and they remain subject to customary closing adjustments.

The asset purchase agreement for the Collins military GPS business calls for cash of $1.925 billion, with an expected tax benefit of approximately $365 million. For Raytheon’s ATR business, the purchase agreement calls for cash of $275 million, with an expected tax benefit of approximately $50 million.

“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 CEO Jerry DeMuro said. “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.”

These proposed acquisitions are subject to the successful closure of the Raytheon-UTC transaction, as well as the satisfaction of other customary closing conditions, including receipt of the required U.S. regulatory approvals. Upon closure, both business lines would be integrated into the company’s Electronic Systems sector.

“These are strong businesses with talented employees who share our focus on quality and technology innovation,” BAE President and Chief Operating Officer Tom Arseneault added. “We are confident of a smooth transition that will accelerate our future together and look forward to welcoming these new employees to the BAE Systems team once the transactions are approved.”

Based in Cedar Rapids, Iowa, Collins’ military GPS business is a longstanding provider of mission critical military GPS receiver solutions and has been a pioneer in military GPS receiver markets for more than 40 years. The firm designs and produces advanced, hardened and secure GPS products to include M-Code, anti-jamming, and anti-spoofing technologies. The business has an installed base of over 1.5 million devices on approximately 280 platform types around the world, including ground, airborne, and weapon systems.

Given the requirement for ubiquitous, secure geo-positioning in contested battlefields, this technology offering will continue to be critical to the U.S. military and partners worldwide.

Raytheon’s ATR business is a leading provider of airborne tactical radio solutions. Based in Fort Wayne, Indiana, and Largo, Florida, the ATR business designs, manufactures, and supplies a wide array of mission-critical communication systems to the U.S. Department of Defense, allied governments, and large defense aircraft manufacturers. The business has leveraged its innovative technologies to develop secure communications solutions that are installed on a broad range of military airborne platforms.

Newsletter

Join thousands already receiving our daily newsletter.

Interests
Are you a paying subscriber to the newspaper? *