Rockwell Collins Inc. announced over the weekend it is buying ARINC, a flight systems company, for $1.39 billion, from private equity firm the Carlyle Group.
The deal will bolster Cedar Rapids, Iowa-based Rockwell Collins' flight systems business.
"Strategically, this acquisition is a natural fit for Rockwell Collins,” Kelly Ortberg, Rockwell Collins' chief executive, said in a statement. “It accelerates our strategy to develop comprehensive information management solutions by building on our existing information-enabled products and systems and ARINC's ground–based networks and services to further expand our opportunities beyond the aircraft."
Rockwell Collins specializes in flight deck communication technologies. The acquisition will steer the company's business more toward commercial than government. Rockwell Collins said it expects 54% of its business will be commercial. The remaining part, 46%, will be government work.
Rockwell Collins said it expects ARINC, based in Annapolis, Md., to report more than $600 million in revenue this year.
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