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.”
Raytheon’s Airborne Tactical Radios, based in Fort Wayne, Indiana, and Largo, Florida, designs and manufactures multi-band, multi-channel anti-jam communications devices used on military airborne platforms.