BAE Systems buys military GPS, radio businesses from US defense firms
Category: #business |   By Hrishikesh Kadam |   Date: 2020-01-22  | 
  • Share
  • Twitter
  • Facebook
  • LinkedIn

BAE Systems buys military GPS, radio businesses from US defense firms

Technologies such as GPS and tactical radios are increasingly gaining prominence in modern warfare and play a critical role in countless military operations.

British aerospace & defense contractor BAE Systems is reportedly buying Collins Aerospace’s military GPS business for $1.925 billion. The company is also paying an additional $275 million to acquire the airborne tactical radios (ATR) business from U.S. defense contractor Raytheon.  

As per sources familiar with the development, the two businesses are being sold in order to obtain the required antitrust clearances for the previously announced pending Raytheon- United Technologies Corporation (UTC) merger.

Reportedly, both the proposed acquisitions are defined as asset transactions along with associated tax benefits worth $365 million and $50 million for the Collins military GPS and Raytheon’s ATR businesses respectively.

The two transactions are subject to the successful closure of the Raytheon-UTC merger, as well as the satisfaction of other customary conditions. This includes receipt of the required regulatory approvals from the U.S. government. Both businesses would be integrated into BAE’s Electronic Systems unit upon the deal closure.

With the growing need for militaries around the world to operate in contested environments, Collins’ and Raytheon’s industry-leading, battle-tested products and solutions will complement and expand BAE System’s existing portfolio of services it offers to customers, stated Jerry DeMuro, CEO of BAE Systems.

This unique opportunity to acquire critical GPS and radio capabilities further helps BAE Systems reinforce its position as a leading provider of defense electronics and telecommunication systems, DeMuro noted, further adding that it will also support the company’s alignment with the U.S. military’s modernization priorities.

Also read: Huawei to use TomTom’s location services on future smartphones

For the record, Collins Aerospace’s Iowa-based military business is a leading provider of cutting-edge military GPS receiver solutions. The company has been a pioneer in in the military GPS receiver business for more than 40 years.

Based in Largo, Florida, and Fort Wayne, Indiana, Raytheon’s ATR business is a leading developer and provider of mission-critical airborne tactical radio solutions. The ATR business develops, manufacturers, and supplies an extensive range of mission-critical communication systems to the U.S. Department of Defense, allied governments, and other prominent defense aircraft manufacturers.

 

Source credit: https://www.baesystems.com/en/article/bae-systems-announces-proposed-acquisition-of-gps-and-atr-business

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Hrishikesh Kadam    

Hrishikesh Kadam

A graduate in electronics and telecommunication engineering, Hrishikesh Kadam has always found writing fascinating. Driven by a never-ending passion for content creation combined with a bit of experience in writing personal blogs, Hrishikesh blends his technical knowl...

Read More

More News By Hrishikesh Kadam

Atos to strengthen its cybersecurity footprint through In Fidem buyout
Atos to strengthen its cybersecurity footprint through In Fidem buyout
By Hrishikesh Kadam

French multinational information technology company Atos has reportedly finalized an agreement to acquire In Fidem, a Quebec-based cybersecurity specialist. According to reliable sources, In Fidem’s acquisition will allow Atos to strengthen its...

Milestone acquires Covestic to boost IT managed services portfolio
Milestone acquires Covestic to boost IT managed services portfolio
By Hrishikesh Kadam

Milestone Technologies, an IT service management company, has recently announced the acquisition of the U.S.-based IT professional services company, Covestic, LLC. The deal was geared towards the expansion of the company’s regional footprint in...

China pledges to revisit anti-monopoly laws against internet platforms
China pledges to revisit anti-monopoly laws against internet platforms
By Hrishikesh Kadam

In recent developments, an annual central conference for China’s judicial, public security, and prosecution work reportedly pledged to reinstate judicial laws and regulations against anti-competitive acts and internet monopolies this year. The...