Rockwell Collins has agreed to purchase Annapolis, Md.-based aviation-information management provider ARINC for $1.39 billion from the investment firm Carlyle Group.
The aerospace and defense company is looking to expand its business with ARINC’s ground-based navigational networks, and increase its in-flight entertainment offerings. According to a statement, the purchase will shift Rockwell Collins’ business to a mix of 54 percent commercial and 46 percent commercial, as new CEO Kelly Ortberg looks to reduce their reliance on government contracts.
"Acquiring ARINC’s computer networks, which manage data for pilots and airports, will also help to expand Rockwell Collins’ traditional business opportunities outside of the aircraft cockpit," said Ortberg.
"It helps us shift the balance in commercial," Ortberg added during a conference call with investors Monday.
John Belcher, CEO of ARINC, said joining Rockwell Collins is a good fit for both companies, as it allows them to begin providing new integrated information management solutions for customers.
Both companies are awaiting regulatory approvals for the acquisition.
Acquiring ARINC’s computer networks, which manage data for pilots and airports, will also help to expand Rockwell Collins’ traditional business opportunities outside of the aircraft cockpit.
John Belcher, CEO of ARINC, said joining Rockwell Collins is a good fit for both companies, as it allows them to begin providing new integrated information management solutions for customers.
Both companies are awaiting regulatory approvals for the acquisition.
Related: Commercial Avionics News