Raytheon, United Technologies complete merger of equals transaction

 

 

On April 3, aerospace businesses Raytheon Co. and United Technologies Corp. completed an all-stock merger of equals transaction, forming new aerospace and defense company Raytheon Technologies Corp. (Waltham, Mass., U.S.) The merger was originally announced in June 2019, and follows United Technologies’ previously announced spin-offs of its Carrier and Otis businesses.

Headquartered in Waltham, Massachusetts, Raytheon Technologies is one of the largest aerospace and defense companies in the world, with a reported $74 billion in pro forma 2019 net sales and a global team of 195,000 employees, including 60,000 engineers and scientists. 

The combined company expects to introduce breakthrough technologies at an accelerated pace across high-value areas such as hypersonics, directed energy, avionics and cybersecurity. In addition, Raytheon Technologies has a strong balance sheet and cash flows to support critical business initiatives, including company and customer-funded R&D.

Raytheon Technologies comprises four market segments:

• Collins Aerospace Systems (Charlotte, N.C., U.S.) specializes in aerostructures, avionics, interiors, mechanical systems, mission systems and power controls that serve customers across the commercial, regional, business aviation and military sectors. 
• Pratt & Whitney (East Hartford, Conn., U.S.) designs, manufactures and services the world’s most advanced aircraft engines and auxiliary power systems for commercial, military and business aircraft.
• Raytheon Intelligence & Space (Arlington, Va., U.S.) specializes in developing advanced sensors, training, and cyber and software solutions — delivering the disruptive technologies its customers need to succeed in any domain, against any challenge. 
• Raytheon Missiles & Defense (Tucson, Ariz., U.S.) provides the industry’s most advanced end-to-end solutions to detect, track and engage threats. 

Per this merger, Raytheon Co. shares ceased trading prior to the market open on April 3, 2020, and each share of Raytheon common stock has been converted in the merger into the right to receive 2.3348 shares of United Technologies common stock. Upon closing of the merger, United Technologies’ name has changed to “Raytheon Technologies Corporation,” and its shares of common stock will begin trading today on the NYSE under the ticker symbol “RTX.” United Technologies shareowners will continue to hold their shares of United Technologies common stock, which now constitute shares of common stock of Raytheon Technologies Corp.

“Raytheon Technologies brings together two companies with combined strengths and capabilities that make us uniquely equipped to support our customers and partners during this unprecedented time. We will also play our part in the war on the COVID-19 pandemic, including doing everything we can to keep our employees around the globe safe and well,” says Greg Hayes, CEO of Raytheon Technologies.