Raytheon Company announced yesterday, June 9, they have entered into a merger of equals agreement with United Technologies Corp.
Raytheon, a leading defense company, and United Technologies, a leading aerospace company, will expand their technology capabilities and become a unified systems provider for segments of aerospace and defense.
"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."
The companies, which combined share $74 billion in pro forma 2019 sales, expect to increase their gross annual cost synergies to $1 billion by year four, as well as adding new revenue streams from their combined technologies.
"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."
The merger is expected to close in the first half of 2020 and create the combined company Raytheon Technologies Corporation.