United Technologies Corp. (UTC) and Rockwell Collins, Inc. announced on 4 September that they had reached a definitive agreement under which UTC will acquire Rockwell Collins for US$140.00 per share in cash and UTC stock in a deal valued at $30 billion.
Rockwell Collins is a provider of aviation solutions for commercial and military customers including avionics, flight controls, aircraft interiors and data connectivity.
“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” said UTC chairman and CEO Greg Hayes. “Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected.”
Kelly Ortberg, chairman, president and CEO of Rockwell Collins, said: “We are extremely pleased to announce this compelling transaction with UTC, which is a testament to the value we have created for Rockwell Collins’ employees, customers and shareowners. The combination will enable us to compete more effectively for future business through continued investments in innovation, world-class integrated product offerings and the ability to retain the top talent in the industry.”
The transaction is projected to close by the third quarter of 2018, said UTC, subject to approval by Rockwell Collins' shareowners, as well as other customary closing conditions, including the receipt of required regulatory approvals. Upon completion of the transaction, Rockwell Collins and UTC Aerospace Systems will be integrated to create a new business unit named Collins Aerospace Systems. Kelly Ortberg will assume the role of CEO. with Dave Gitlin serving as president and COO.