BAE Systems announced Jan. 20 it intends to buy Collins Aerospace’s military Global Positioning System for $1.9 billion and Raytheon’s Airborne Tactical Radios division for $275 million.
These two businesses are being sold in order to clear the antitrust regulatory requirements of the pending merger between Raytheon and United Technologies Corp.
“Completion of both acquisitions are subject to successful closure of the Raytheon-United Technologies merger, as well as customary regulatory approvals and conditions,” the company said Jan. 20 in a statement.
BAE Systems officials called the acquisitions “unique opportunities” to expand the company’s defense electronics, radio and GPS business.
“This strengthens our position as a leading provider of defense electronics and communications systems … as militaries around the world increasingly operate in contested environments,” Jerry DeMuro, CEO of BAE Systems, said in the company’s statement.
The proposed acquisitions would be integrated into BAE Systems’ Electronic Systems sector.
Collins’ military GPS business, based in Cedar Rapids, Iowa, has been a supplier of military GPS receivers for more than 40 years. The company 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.
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.