Home Business NewsBusinessBusiness Growth BAE Systems spends $2.2bn on military radios and GPS business

BAE Systems spends $2.2bn on military radios and GPS business

by LLB Reporter

Defence giant BAE Systems has spent a whopping $2.2bn (£1.7bn) on acquiring Collins Aerospace GPS business for $1.9bn and almost $300m on Raytheon’s airborne radio division.

The deal comes only six months after United Technologies agreed a merger creating a $120bn business to challenge the dominance of BASE Systems.

Bosses said, “These two proposed acquisitions represent a unique opportunity to purchase high quality technology-based businesses with market-leading capabilities and long histories of pioneering innovation in their fields.”

They added, that they believe the business will be “highly complementary to our priority growth area of precision guided munitions in our Electronics Systems division.”

BAE are expected to reach revenues of $259m with underlying profits of $127m.

BAE said, the new radio business designs, manufactures and supplies are “a broad range of mission-critical communication systems to the US department of defence, allied governments and large defence aircraft manufacturers.”

In early morning trading shares rose 2.9% up 17.8p to 642.4p.

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