Rockwell Collins has completed a $1.4 billion acquisition of aviation communications firm Arinc and divest two businesses totalling roughly $90 million in annual sales.
The announcement on 23 December means Collins can proceed with plans to integrate Arinc and shift the majority of its annual revenues to the commercial aviation market from the declining defence sector.
“With this move we take a major leap forward to realizing our vision of providing a richer set of seamless information management solutions that encompass the aircraft and ground-based systems,” says Kelly Ortberg, chief executive and president of Collins.
As part of the integration process, Collins will divest Arinc’s industry standards organization to SAE International. Collins has also started a process to divest Arinc’s aerospace systems engineering and support business, which modifies military aircraft.
The two divestments represent about 15% of Arinc’s annual revenues. Arinc, which Collins acquired from the Carlyle Group private equity firm, expected to collect $600 million in revenues in 2013.