BAE Systems to Buy GPS, Radio Businesses for $2.2 Billion

Date : 01/20/2020 @ 8:04AM
Source : Dow Jones News
Stock : Raytheon Co (RTN)
Quote : 222.18  1.74 (0.79%) @ 1:00AM
After Hours
Last Trade
Last $ 222.40 ▲ 0.22 (0.10%)

BAE Systems to Buy GPS, Radio Businesses for $2.2 Billion

Bae Systems (PK) (USOTC:BAESY)
Historical Stock Chart

2 Months : From Dec 2019 to Feb 2020

Click Here for more Bae Systems (PK) Charts.

By Matteo Castia

 

BAE Systems PLC (BAESY) said Monday that it has agreed to buy Collins Aerospace's Military Global Positioning System and Raytheon's Airborne Tactical Radios businesses for a total price of $2.2 billion.

The defense-and-security company said that it will pay $1.93 billion for Collins Aerospace' GPS business and $275 million for Raytheon Co.'s (RTN) radio business. Both acquisitions are subject to the closure of the ongoing merger between Raytheon and Collins Aerospace's parent company United Technologies Corp. (UTX).

BAE said the GPS business is expected to generate a revenue of $359 million and adjusted earnings before interest, taxes, depreciation and amortization--which strips out exceptional and other one-off items--of $127 million this year. It added that it anticipates the business to be "immediately earnings and cash flow accretive," and that it will generate returns on investment from its third full year of trading.

BAE also said that the radio business is expected to generate $125 million for 2019.

BAE's Chief Executive Charles Woodburn highlighted the strategic nature of these acquisitions, which are "focused on areas of highest priority defense spending" in the U.S.

 

Write to Matteo Castia at matteo.castia@dowjones.com

 

(END) Dow Jones Newswires

January 20, 2020 02:49 ET (07:49 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

Latest RTN Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.