CEDAR RAPIDS, Iowa, 13 Aug. 2013. Rockwell Collins (NYSE:COL) officials revealed plans to acquire ARINC Inc., a provider of communications and information processing solutions for commercial aviation and part of The Carlyle Group, for $1.39 billion.
The transaction, related to the growing field of aviation information management, will combine ARINC’s networks and services with Rockwell Collins-developed avionics and cabin technologies.
"Strategically, this acquisition is a natural fit for Rockwell Collins," says Rockwell Collins Chief Executive Officer and President Kelly Ortberg. "It accelerates our strategy to develop comprehensive information management solutions by building on our existing information-enabled products and systems and ARINC's ground–based networks and services to further expand our opportunities beyond the aircraft."
ARINC touches the entire aviation ecosystem, including pilots, operators, maintenance, passengers, controllers, regulators, security, and airport operations. 2013 revenues are expected to exceed $600 million. When completed, the acquisition will shift the balance of Rockwell Collins’ business to approximately 54 percent commercial and 46 percent government.
“ARINC’s strong customer base, high customer retention rates and subscription business model will help the company achieve accelerated growth and benefit from greater earnings consistency throughout the commercial aviation business cycle,” adds Ortberg.
"Rockwell Collins’ expertise in managing information on-board the aircraft, coupled with our innovative and reliable air to ground communications services, will be instrumental in providing new integrated information management solutions for our customers," says ARINC Chairman and Chief Executive Officer John Belcher.
The transaction is expected to close upon receipt of regulatory approvals and other customary conditions. It is expected to be EPS accretive once certain transaction and integration costs have been incurred.