[Satellite TODAY Insider 12-21-10] Raytheon signed a definitive agreement to acquire communications specialist Applied Signal Technology for approximately $490 million in cash, Raytheon announced Dec. 20.
     Raytheon Chairman and CEO William Swanson said the acquisition would enhance his company’s full-spectrum integrated sensor solution capabilities for classified and other government customers. “Applied Signal brings world class technologies and talent that complement Raytheon’s strong intelligence, surveillance and reconnaissance solutions. This combination of strengths will provide capabilities to address our customers’ current and future challenges.”
     The transaction will see Raytheon acquire Applied Signal’s tactical signals and communications intelligence systems, data fusion and information operations and information assurance products. Raytheon will integrate the technology with its own sensor products and combine Applied Signal’s capabilities with its program management, mission support and system integration services.
     Raytheon also acquires Applied Signal’s customer base – 90 percent of which consists of classified customers – as well as the company’s portfolio of broadband network communications, including: cyber intelligence systems; software and analytics to address sophisticated cyberspace threats; electronic warfare solutions; and other capabilities that enable customers to detect, evaluate and respond to potential threats.
     Following completion of the transaction in the first quarter of 2011, the Applied Signal business will be integrated into Raytheon’s Space and Airborne Systems (SAS) unit.
     “Applied Signal aligns with our strategy of expanding participation in our customers’ principal areas of need, particularly ISR systems. Joining Raytheon’s radar, electro-optical/infrared sensors, and communications technologies with Applied Signal’s SIGINT/COMINT systems will enhance our ability to deliver a full spectrum of integrated sensor solutions,” Raytheon SAS President Rick Yuse said in a statement.
    The acquisition is still subject to customary closing conditions and regulatory approvals. Raytheon said company does not expect the transaction to affect its earnings.

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