BAE Systems intends to buy Collins Aerospace’s military Global Positioning System business for $1.9 billion and Raytheon’s Airborne Tactical Radios division for $275 million, to be sold for antitrust clearances.
Waiting for the pending merger between Raytheon and United Technologies Corporation (UTC) — parent company of Collins Aerospace — BAE Systems shows its interest for two businesses to be sold under the scope of the required antitrust clearances. According to Jerry DeMuro, CEO of BAE Systems, Inc., aligning “with the modernization priorities of the U.S. military and its partners” is key to BAE Systems and “this unique opportunity to acquire critical radio and GPS capabilities strengthens BAE Systems position as a leading provider of defense electronics and communications systems”. Therefore, BAE Systems is offering $1.9 billion for Collins Aerospace’s military Global Positioning System business whereas the purchase agreement for Raytheon’s Airborne Tactical Radios business is worth $275 million. Both businesses would be integrated into the British company’s Electronic Systems sector.
Based in Cedar Rapids, Iowa, Collins’ military GPS business is a longstanding provider of mission critical military GPS receiver solutions which 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.
As for Raytheon’s ATR business, based in Fort Wayne, Indiana, and Largo, Florida, it designs, manufactures, and supplies a wide array of mission-critical communication systems such as broad spectrum, multi-band, multi-channel radios. Raytheon’s ATR battle proven, robust, anti-jam, and encryption capabilities are used operated by the U.S. Department of Defense, allied governments, and large defense aircraft manufacturers.