BAE Systems has entered a definitive Asset Purchase Agreement to acquire Collins Aerospace’s Military GPS business for $1.925 billion, and Raytheon’s Airborne Tactical Radios division for $275 million. The two businesses are being sold to comply with antitrust requirements of the pending merger between Raytheon and United Technologies Corp.
Collins’ military GPS business, based in Cedar Rapids, Iowa, has been a supplier of military GPS receivers for more than 40 years, much of it under the name Rockwell Collins. The Rockwell entity also had a significant historic role in GPS receiver development from the very beginning.
The company currently designs and produces GPS receivers that are compliant with military M-Code, anti-jamming, and anti-spoofing requirements. Collins says there are more than 1.5 million devices used today on approximately 280 types of weapons systems, ground and airborne platforms.
The proposed acquisitions would be integrated into BAE Systems’ Electronic Systems sector.
“These proposed acquisitions present a unique opportunity to add high quality, technology focused businesses to our Electronic Systems sector,” stated BAE Systems CEO Charles Woodburn. “It’s rare that two businesses of this quality, with such strong growth prospects and close fit to our portfolio, become available. The strategic and financial rationale is strong and these proposed acquisitions, which are focused on areas of highest priority defence spending, will further enhance the Group’s opportunity for continued growth in Electronic Systems.”
The Collins GPS business provides mission-critical military GPS receiver solutions, notably the handheld dual-frequency Defense Advanced GPS Receiver (DAGR) and its predecessor the single-frequency Precision Lightweight GPS Receiver (PLGR), for infantry units. It also designs and produces advanced hardened and secure GPS products incorporating next-generation M-Code technologies for a wide range of U.S. military platforms. It has fielded more than 1.5 million units and currently has a presence on over 200 ground, 40 airborne and 40 weapons platforms and is a key provider on the two highest volume weapons programs for the US Air-Force.
The business is based in Cedar Rapids, Iowa, with approximately 675 employees and post-acquisition, would be integrated into BAE’s Electronic Systems division.
Next-generation M-Code GPS technologies are mandated by Congress for all military GPS user equipment after October 2020. More than 700 platforms are anticipated to be transitioned to M-Code.
