E-Systems bought by Raytheon
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
The consolidation of the US defence industry continued yesterday with the $2.3bn (£1.44bn) acquisition of E-Systems, a leading military communications system builder, by Raytheon, the aerospace to consumer goods conglomerate.
Raytheon, which gained fame during the Gulf War with the spectacular success of its anti-missile Patriot defence system, has launched a tender offer worth $64 for each E-Systems share, a 41 per cent premium to Friday's closing price.
The deal has been approved by the boards of both companies.
Raytheon's chairman and chief executive, Dennis Picard, said: "The combination opens new defence and commercial markets worldwide, brings our annualized electronics sales to $6bn and our current electronics backlog to $8bn."
The Massachusetts-based Raytheon, a key Pentagon contractor, brings annual revenues of $10bn and 60,000 employees to the new grouping.
E-Systems, based in Dallas, Texas, will be the smaller partner. It had turnover of around $2bn last year and employed 16,000.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments