The Associated Press
CEDAR RAPIDS, Iowa (AP) -- Aviation and military electronics maker Rockwell Collins said Sunday it is buying Annapolis, Md.-based ARINC Inc. from the investment firm The Carlyle Group for $1.39 billion.
Cedar Rapids-based Rockwell Collins, which currently does more than half its business with the government, was seeking to add commercial customers. ARINC focuses on networks and services, while Rockwell Collins works on avionics and cabin technology.
The acquisition would reduce Rockwell Collins' reliance on government contracts to 46 percent of its business, from its current 52 percent. ARINC is expected to have revenue over $600 million this year, Rockwell said.
Analysts, on average, expect Rockwell Collins to post revenue of $4.64 billion in the fiscal year ending in September, down 2 percent from the $4.73 billion it reported for fiscal 2012.
ARINC, which also has offices in London and Singapore, has about 3,200 employees, according to Capital IQ. The announcement didn't include details about whether the agreement would lead to any immediate job losses.
Rockwell has about 19,000 employees around the world.
The deal is subject to regulatory approvals.
Shares of Rockwell Collins Inc. closed Friday at $74.42, up 28 percent since the start of the year. The Carlyle Group LP shares ended the week at $27.05, up 4 percent in 2013.
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