In a joint announcement, United Technologies Corp (UTC) and Rockwell Collins have revealed that aerospace supplier United Technologies will be buying the latter for $30 billion.
The two companies have reached an agreement and made the big announcement on Monday. The deal will make United one of the world’s biggest makers of civilian and defense aircraft components.
As part of the deal, UTC will pay $140 per share for Rockwell Collins, split between $93.33 per in cash and $46.67 in stock, according to both companies.
UTC will be acquiring Rockwell Collin’s debt as well. The acquisition also has a total equity of $23 billion.
Both companies said that Rockwell Collins and UTC’s aerospace systems segment will be combined to create a new business unit named Collins Aerospace Systems.
“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” UTC’s chairman and chief executive officer, Greg Hayes, remarked.
“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,” he also said.
Disclaimer: We have no position in United Technologies Corporation (NYSE: UTX) nor Rockwell Collins, Inc. (NYSE: COL) and have not been compensated for this article.