Raytheon Company announces merger with United Technologies

Raytheon Company has announced a merger with United Technologies, the leading aerospace company that includes Collins Aerospace and Pratt & Whitney. The pair have inked an agreement that entails an all-stock merger of equals. The deal will create a complementary profile of platform-agnostic aerospace and defense technologies. The resulting entity will be a leading systems provider with advanced technologies to cater to the rapidly growing segments in the aerospace as well as defense industries. The synergistic enterprise, which will be named Raytheon Technologies Corporation, will provide a broader range of technologies and research and development capacities to deliver advanced and affordable solutions that are synonymous with the needs of the customers and the national defense strategies of the US as well as its allies.

The combination will exclude Otis and Carrier, which will spin-off from United Technologies before the third quarter of next year. Raytheon Technologies will be located in the greater Boston metro region and will maintain a corporate presence in the current locations. The board of directors will have fifteen members, including eight directors from United Technologies and seven from Raytheon, including the lead director from Raytheon. The merger is chalked down for closing in the first half of next year, after the separation of Otis and Carrier from the business, which is not expected to be affected by the proposed merger. The deal establishes a broad and complementary product profile of platform-agnostic capacities through the high-growth segments of aerospace and defense, which is also expected to lower the risk of concentration in a single platform.

The company will be dedicated to developing novel technologies efficiently by leveraging the combined yearly company and customer funded R&D expenditure valued at nearly $8 million, more than 60,000 engineers and seven technology Centers of Excellence. The company will focus on advancing segments including cyber protection for connected aircraft; directed energy weapons; intelligence, surveillance, and reconnaissance (ISR) in contested environments; hypersonics and future missile systems; advanced analytics and artificial intelligence for commercial aviation; and next-generation connected airspace.