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

Convergency enables remote analytics and cloud for healthcare sector
Convergency enables remote analytics and cloud for healthcare sector
By Hrishikesh Kadam

With millions of people and companies working remotely due to the coronavirus outbreak, it is crucial that data can be made widely available and easily shared. IT & consulting services firm Convergency LLC has launched an advanced, cloud-based te...

Toshiba unveils efficient power MOSFETs for industrial equipment
Toshiba unveils efficient power MOSFETs for industrial equipment
By Hrishikesh Kadam

A flourishing consumer electronics industry has propelled the demand for semiconductor technologies, including MOSFETs, with greater power density, compact package sizes, higher energy efficiency, and better operational reliability. It looks like Ja...

Prisma Health unveils ventilator extension device for COVID-19 patients
Prisma Health unveils ventilator extension device for COVID-19 patients
By Hrishikesh Kadam

The ongoing COVID-19 outbreak had resulted in a massive demand-supply gap for ventilators, ventilator accessories, and other respiratory equipment. Ventilator shortage is more acute in states like New York, California, and Washington. To address thi...