LONDON (AFP) – British defence company BAE Systems yesterday said it had agreed to buy key electronic systems from US peers Raytheon and United Technologies whose planned merger has necessitated asset sales.
In a statement, BAE said it would pay USD1.925 billion (EUR1.734 billion) in cash for the military global positioning system (GPS) belonging to United subsidiary Collins Aerospace. The British group will also acquire Raytheon’s airborne tactical radios business for a cash sum of USD275 million.
“These assets have come to market as part of the regulatory process relating to the merger,” the statement said.
BAE Chief Executive Charles Woodburn said the “proposed acquisitions, which are focussed on areas of highest priority defence spending, will further enhance the group’s opportunity for continued growth in electronic systems”.