BAE Systems PLC (LON:BA.) has completed the acquisition of the airborne tactical radio business from Raytheon Technologies Corp (NYSE:RTX) for US$275mln.
US defence giant Raytheon was forced to sell the business as one of the conditions of its recent merger with United Technologies, with the US$1.93bn sale to BAE of the Collins Aerospace military GPS arm also agreed but still to be completed.
BAE Systems, which is using approximately £218mln of existing cash resources to pay for the tactical radio unit, said the acquisition was a “strong strategic fit, adding complementary positions in the airborne communications domain”.
The radios business designs, manufactures and supplies communication systems featuring anti-jamming, multi-band, multi-channel and encryption capabilities to the US government and its allies, along with their large defence aircraft manufacturers.
As well as its range of intellectual property in the secure radio communications domain, the radios business has a significant installed base of radios across a number of military airborne platforms in allied countries, with around 100 employees in locations in Indiana and Florida.
The business will become part of BAE’s Electronic Systems division.