BAE Systems has acquired Collins Aerospace’s military Global Positioning System (GPS) business and Raytheon’s Airborne Tactical Radios (ATR) business. These two high-performing businesses are being sold in connection with obtaining the required antitrust clearances for the previously announced pending merger between Raytheon and United Technologies Corporation (UTC).
As militaries around the world increasingly operate in contested environments, the industry-leading, battle-tested products of these two businesses will complement and extend BAE’s existing portfolio of solutions. This unique opportunity to acquire critical radio and GPS capabilities strengthens the company’s position as a leading provider of defense electronics and communications systems and further supports its 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.
The 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.
Collins’ Military GPS Business is a provider of mission-critical military GPS receiver solutions and has been a pioneer in military GPS receiver markets. It designs and produces advanced, hardened and secure GPS products to include M-Code, anti-jamming, and anti-spoofing technologies. Raytheon’s ATR business is a provider of airborne tactical radio solutions. It 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.
