Raytheon, United Technologies confirm all-stock merger

The company will be a 57-43 split between the shareowners of United Technologies and Raytheon respectively.
The company will be a 57-43 split between the shareowners of United Technologies and Raytheon respectively.

The companies expect the deal to close in the first half of 2020.

Posted: Jun 9, 2019 8:23 PM

Raytheon Company and United Technologies Corp. announced they are entering an all-stock merger on Sunday.

The combined company, which will be called "Raytheon Technologies," "will have approximately $74 billion in pro forma 2019 sales," according to a joint statement from the companies.

Areas of joint advancement include, but are not limited to:

  • Hypersonics and future missile systems
  • Directed energy weapons
  • Intelligence, surveillance and reconnaissance (ISR) in contested environments
  • Cyber protection for connected aircraft
  • Next generation connected airspace
  • Advanced analytics and artificial intelligence for commercial aviation

The Wall Street Journal was first to report on Saturday that a deal was in late-stage talks.

United Technologies shareowners would own about 57 percent of the company and Raytheon shareowners would hold 43 percent of the new company.

"Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success. Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world's most dedicated workforce," said Tom Kennedy, Raytheon Chairman and CEO.

"With our enhanced capabilities, we will deliver value to our customers by anticipating and addressing their most complex challenges, while delivering significant value to shareowners."

As they currently exist, the two companies have a combined market value of $166 billion, with UTC making up the majority, according to CNN. United Technologies is the process of spinning off both Otis and Carrier into separate business. 

"The combination of United Technologies and Raytheon will define the future of aerospace and defense," said Greg Hayes, United Technologies Chairman and CEO.

"Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers' highest priorities. Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners."

In a statement, the companies said a conference call to discuss the merger will take place on Monday, June 10 at 7 a.m. C.S.T.

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