A Successful Combination United Technology
United Technology has applied for acquisition of Aerovironment, one of the leading software companies in the world. This acquisition is expected to be finalized in the coming months. This transaction is expected to create a new enterprise called Allied Universal Corporation. The acquisition is being done in exchange for United Technology’s shares of its wholly owned Aerovironment Systems, Inc.
United Technology is seeking to combine with Raytheon Aerospace on a $14.7 million deal that would value the combined entity at over $76 billion, sources said. Both companies are major aerospace manufacturers and suppliers of space launch vehicle programs and other missile launch services. United Technology would gain access to Raytheon’s leadership and technology platform while Raytheon would acquire a larger slice of the aviation industry through a contractual service agreement.
“This is a very important day for United Technology and Raytheon,” said Doug Jackson, chief executive officer of United Technology. “Raytheon has been a valued partner of United Technology since we acquired their aerospace business in October 1996. We are pleased that Raytheon is planning to join us in a shared venture which will strengthen our alliance and accelerate growth in areas of growth and specialty.” “This is a very positive move for Raytheon, a company we have great faith in, and a move that will certainly help them diversify their offerings and strengthen their position in the aerospace industry,” said Thomas L. Perlman, owner of American International Corp. “They will also be able to tap into a tremendous resource of skilled and highly trained engineers from a company that is a world leader in providing products and services related to the aircraft, missile and defense industries.” “This transaction is very positive for United Technology plc and will strengthen the balance sheet and overall foundation of their business,” said John C. Whitcomb, owner of Whitcomb Industries.
The acquisition of a successful aerospace business will greatly benefit Raytheon. This will help the company to expand into new markets and increase revenues from a variety of markets. The combined company’s resources will allow it to compete more favorably against its competitors, increase productivity, and bring value to shareholder’s equity. Moreover, combining with United Technology will allow for increased funding for research and development programs for the company’s aircraft and missile defense programs.
This is a very good transaction for United Technology plc as it gives them a chance to increase revenues by establishing new markets. The combined company will be better positioned to increase revenues and reduce costs in the future. The combination is also very ideal for Raytheon, given that they have recently been focusing on improving their aircraft and missile capabilities. In the past, Raytheon has focused most of its attention on developing and manufacturing the MRO, or Multi-rocket Rocket, for the combat aircraft.
Therefore, combining with United Technology will give them a chance to leverage the combined companies’ technological expertise and experience in the areas of aerospace, defense, and energy. This will allow Raytheon to develop new products and technologies that will better serve the United States. The combination of a great management team, strategic management team, and great engineers will help to maximize the potential of the MRO as it develops new applications and enhances the revenue model. This will help them realize their revenue target for the next five to ten years, depending on how the economy does.
A great example of this is how United Technology and Raytheon formed a strategic alliance back in 2005 to build, test, and support the MRO. This alliance has significantly contributed to both companies’ ability to provide services in support of the US military, as well as creating a strong platform for Raytheon’s global leadership in the aerospace sector. United Technology’s Connecticut facility has a strong and growing aerospace presence. It has several patents listed, as well as a manufacturing center, which are responsible for developing and manufacturing parts and components used in the manufacture of defense system components.
The combination of these two companies strengthens the aerospace engineering capabilities of United Technology. This will create a winning situation for everyone. This will also allow for the further development of the technologies and systems that will be necessary to support the needs of the defense industry in the future. Raytheon will continue to expand its presence in the state of Connecticut for years to come.