Aviation electronic solutions firm Rockwell Collins has reached an agreement to acquire communications, engineering and integration solutions provider ARINC, a portfolio company of The Carlyle Group, for $1.39bn.
Announced on August 11, the transaction will bring together two leading players in the growing field of aviation information management, combining ARINC’s networks and services with the avionics and cabin technologies developed by Rockwell.
Kelly Ortberg, Rockwell’s CEO and President, commented: “Strategically, this acquisition is a natural fit for Rockwell Collins. 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.”
ARINC’s 2013 revenues are projected to be in excess of $600m. When completed, the acquisition will shift the balance of Rockwell’s business to approximately 54% commercial and 46% government.
Ortberg added: “ARINC’s strong customer base, high customer retention rates and subscription business model will help the company achieve accelerated growth and benefit from greater earnings consistency throughout the commercial aviation business cycle.”
The transaction is expected to close upon receipt of regulatory approvals and other customary conditions.