|Master Investor Magazine
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Shares in FTSE 100 defence firm BAE Systems (LON:BA.) climbed by 3.80% to 648.31p (as 14:45 GMT) after it announced the acquisition Collins Aerospace’s Military GPS business for $1.9 billion in cash. The company also said that it would be acquiring Raytheon’s airborne tactical radios arm.
CEO Charles Woodburn commented: “These proposed acquisitions present a unique opportunity to add high quality, technology focused businesses to our Electronics Systems sector. It’s rare that two businesses of this quality, with such strong growth prospects and close fit to our portfolio, become available. The strategic and financial rationale is strong and these proposed acquisitions, which are focused on areas of highest priority defence spending, will further enhance the Group’s opportunity for continued growth in Electronic Systems. We look forward to welcoming the employees of the two businesses to the Company, as we work together to help drive our business forward successfully“.